-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HEz++SI+UawHopm4LuqEwEpqlEw7rd+IGpgYE4lTzoDwzet0zNlXyUfPHGp2tOjI XVGbdC+Lc8enqAa42I0p2g== 0000935069-08-001876.txt : 20080826 0000935069-08-001876.hdr.sgml : 20080826 20080826125808 ACCESSION NUMBER: 0000935069-08-001876 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080630 FILED AS OF DATE: 20080826 DATE AS OF CHANGE: 20080826 EFFECTIVENESS DATE: 20080826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04108 FILM NUMBER: 081038633 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 0000752737 S000010333 Oppenheimer Aggressive Growth Fund/VA C000028590 Non-Service C000028591 Service N-CSRS 1 rs620_48361ncsrs.txt RS620_48361NCSRS.TXT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-4108 -------- Oppenheimer Variable Account Funds -------------------------------------------------- (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 ------------------------------------------------------ (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 --------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: December 31 ----------- Date of reporting period: 06/30/2008 ---------- ITEM 1. REPORTS TO STOCKHOLDERS. June 30, 2008 Oppenheimer Management Capital Appreciation Commentaries Fund/VA and A Series of Oppenheimer Variable Account Funds Semiannual Report MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES. FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ------ --------------- ------------- -------------- Non-Service shares $ 1,000.00 $ 912.80 $ 3.14 --------------- ------------- -------------- Service shares 1,000.00 911.50 4.29 HYPOTHETICAL (5% return before expenses) Non-Service shares 1,000.00 1,021.58 3.32 --------------- ------------- -------------- Service shares 1,000.00 1,020.39 4.53 --------------- ------------- --------------
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ----- -------------- Non-Service shares 0.66% ------------- Service shares 0.90
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited
SHARES VALUE --------- -------------- COMMON STOCKS--99.7% CONSUMER DISCRETIONARY--8.0% HOTELS, RESTAURANTS & LEISURE--2.1% Burger King Holdings, Inc. 405,220 $ 10,855,844 -------------- Las Vegas Sands Corp. (1) 597,520 28,346,349 -------------- 39,202,193 INTERNET & CATALOG RETAIL--0.4% Amazon.com, Inc. (1) 100,500 7,369,665 --------- -------------- MEDIA--3.2% Focus Media Holding Ltd., ADR (1) 762,200 21,128,184 --------- -------------- Liberty Global, Inc., Series A (1) 559,790 17,594,200 --------- -------------- McGraw-Hill Cos., Inc. (The) 308,600 12,381,032 --------- -------------- XM Satellite Radio Holdings, Inc., Cl. A (1) 1,146,300 8,986,992 -------------- 60,090,408 SPECIALTY RETAIL--0.9% Abercrombie & Fitch Co., Cl. A 281,140 17,621,855 --------- -------------- TEXTILES, APPAREL & LUXURY GOODS--1.4% Polo Ralph Lauren Corp., Cl. A 432,100 27,127,238 --------- -------------- CONSUMER STAPLES--5.8% BEVERAGES--0.4% Dr. Pepper Snapple Group, Inc. (1) 395,970 8,307,451 --------- -------------- FOOD & STAPLES RETAILING--1.9% Costco Wholesale Corp. 379,700 26,632,158 --------- -------------- Sysco Corp. 335,110 9,218,876 -------------- 35,851,034 FOOD PRODUCTS--3.5% Cadbury plc 2,211,040 27,744,111 --------- -------------- Nestle SA 825,780 37,313,890 -------------- 65,058,001 ENERGY--11.3% ENERGY EQUIPMENT & SERVICES--4.7% Schlumberger Ltd. 402,600 43,251,318 --------- -------------- Smith International, Inc. 218,700 18,182,718 --------- -------------- Transocean, Inc. 108,300 16,503,837 --------- -------------- Weatherford International Ltd. (1) 232,900 11,549,511 ----------- 89,487,384 OIL, GAS & CONSUMABLE FUELS--6.6% Occidental Petroleum Corp. 546,800 49,135,448 --------- -------------- Range Resources Corp. 411,480 26,968,399 --------- -------------- Southwestern Energy Co. (1) 211,100 10,050,471 --------- -------------- XTO Energy, Inc. 554,500 37,988,795 -------------- 124,143,113 FINANCIALS--9.4% CAPITAL MARKETS--4.6% Charles Schwab Corp. (The) 575,500 11,820,770 --------- -------------- Credit Suisse Group AG 479,891 21,774,519 --------- -------------- Fortress Investment Group LLC, Cl. A 552,281 6,804,102 --------- -------------- Goldman Sachs Group, Inc. (The) 148,100 25,902,690 --------- -------------- Och-Ziff Capital Management Group, Cl. A 520,900 9,902,309 --------- -------------- T. Rowe Price Group, Inc. 199,300 11,254,471 -------------- 87,458,861 CONSUMER FINANCE--0.5% American Express Co. 250,900 9,451,403 --------- -------------- DIVERSIFIED FINANCIAL SERVICES--2.7% Bolsa de Mercadorias e Futuros 1,303,000 11,224,771 --------- -------------- CME Group, Inc. 43,740 16,760,731 --------- -------------- IntercontinentalExchange, Inc. (1) 111,100 12,665,400 --------- -------------- MSCI, Inc., Cl. A (1) 306,090 11,108,006 -------------- 51,758,908 INSURANCE--0.9% Prudential Financial, Inc. 282,000 16,846,680 --------- -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.7% Jones Lang LaSalle, Inc. 209,710 12,622,445 --------- -------------- HEALTH CARE--15.1% BIOTECHNOLOGY--2.8% Celgene Corp. (1) 358,720 22,911,446 --------- -------------- Gilead Sciences, Inc. (1) 546,300 28,926,585 -------------- 51,838,031 HEALTH CARE EQUIPMENT & SUPPLIES--3.0% Bard (C.R.), Inc. 152,290 13,393,906 --------- -------------- Baxter International, Inc. 390,000 24,936,600 --------- -------------- Dentsply International, Inc. 240,900 8,865,120 --------- -------------- Stryker Corp. 148,200 9,318,816 -------------- 56,514,442 HEALTH CARE PROVIDERS & SERVICES--3.0% Aetna, Inc. 308,900 12,519,717 --------- -------------- Express Scripts, Inc. (1) 452,200 28,361,984 --------- -------------- Schein (Henry), Inc. (1) 300,790 15,511,740 -------------- 56,393,441 LIFE SCIENCES TOOLS & SERVICES--2.4% Covance, Inc. (1) 181,127 15,580,545 --------- -------------- Thermo Fisher Scientific, Inc. (1) 537,380 29,948,187 -------------- 45,528,732 PHARMACEUTICALS--3.9% Allergan, Inc. 310,100 16,140,705
F1 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued
SHARES VALUE ---------- -------------- PHARMACEUTICALS Continued Roche Holding AG 189,587 $ 34,019,651 ---------- -------------- Shire Ltd. 902,830 14,808,894 ---------- -------------- Teva Pharmaceutical Industries Ltd., Sponsored ADR 208,400 9,544,720 ---------- -------------- 74,513,970 INDUSTRIALS--7.9% AEROSPACE & DEFENSE--5.1% General Dynamics Corp. 292,300 24,611,660 ---------- -------------- Lockheed Martin Corp. 277,920 27,419,587 ---------- -------------- Precision Castparts Corp. 194,650 18,758,421 ---------- -------------- United Technologies Corp. 408,100 25,179,770 -------------- 95,969,438 ELECTRICAL EQUIPMENT--1.6% ABB Ltd. (1) 1,114,127 31,443,885 ---------- -------------- INDUSTRIAL CONGLOMERATES--1.2% McDermott International, Inc. (1) 369,200 22,849,788 ---------- -------------- INFORMATION TECHNOLOGY--31.1% COMMUNICATIONS EQUIPMENT--8.7% Cisco Systems, Inc. (1) 2,169,500 50,462,570 ---------- -------------- Corning, Inc. 672,100 15,491,905 ---------- -------------- F5 Networks, Inc. (1) 477,060 13,558,045 ---------- -------------- QUALCOMM, Inc. 852,100 37,807,677 ---------- -------------- Research in Motion Ltd. (1) 401,000 46,876,900 -------------- 164,197,097 COMPUTERS & PERIPHERALS--3.9% Apple, Inc. (1) 330,900 55,405,896 ---------- -------------- EMC Corp. (1) 193,900 2,848,391 ---------- -------------- NetApp, Inc. (1) 697,200 15,101,352 -------------- 73,355,639 INTERNET SOFTWARE & SERVICES--5.0% eBay, Inc. (1) 860,500 23,517,465 ---------- -------------- Google, Inc., Cl. A (1) 135,200 71,171,984 -------------- 94,689,449 IT SERVICES--5.2% Affiliated Computer Services, Inc., Cl. A (1) 505,410 27,034,381 ---------- -------------- Cognizant Technology Solutions Corp. (1) 806,500 26,219,315 ---------- -------------- MasterCard, Inc., Cl. A 102,560 27,231,731 ---------- -------------- Visa, Inc., Cl. A (1) 229,240 18,639,504 -------------- 99,124,931 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3.2% ASML Holding NV 681,799 16,635,896 ---------- -------------- Broadcom Corp., Cl. A (1) 736,800 20,107,272 ---------- -------------- Microchip Technology, Inc. 478,100 14,601,174 ---------- -------------- NVIDIA Corp. (1) 515,300 9,646,416 -------------- 60,990,758 SOFTWARE -- 5.1% Adobe Systems, Inc. (1) 719,100 28,325,349 ---------- -------------- Autodesk, Inc. (1) 643,900 21,770,259 ---------- -------------- Microsoft Corp. 812,000 22,338,120 ---------- -------------- Oracle Corp. (1) 614,500 12,904,500 ---------- -------------- Salesforce.com, Inc. (1) 163,000 11,121,490 -------------- 96,459,718 MATERIALS -- 7.0% CHEMICALS -- 7.0% Monsanto Co. 546,700 69,124,748 ---------- -------------- Mosaic Co. (The) (1) 54,100 7,828,270 ---------- -------------- Potash Corp. of Saskatchewan, Inc. 84,000 19,199,880 ---------- -------------- Praxair, Inc. 388,900 36,649,936 -------------- 132,802,834 TELECOMMUNICATION SERVICES -- 4.1% WIRELESS TELECOMMUNICATION SERVICES -- 4.1% America Movil SAB de CV, ADR, Series L 457,600 24,138,398 ---------- -------------- Crown Castle International Corp. (1) 740,600 28,683,438 ---------- -------------- NII Holdings, Inc. (1) 500,560 23,771,594 -------------- 76,593,430 -------------- Total Common Stocks (Cost $1,515,593,266) 1,885,662,222 OTHER SECURITIES -- 0.0% Seagate Technology International, Inc. (1,2,3) (Cost $0) 325,000 32,500 INVESTMENT COMPANY -- 0.7% Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% (4,5) (Cost $12,718,734) 12,718,734 12,718,734 ---------- -------------- TOTAL INVESTMENTS, AT VALUE (COST $1,528,312,000) 100.4% 1,898,413,456 ---------- -------------- LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (8,204,834) -------------- NET ASSETS 100.0% $1,890,208,622 ========== ==============
F2 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $32,500,which represents less than 0.005% of the Fund's net assets. See Note 6 of accompanying Notes. 3. Escrow shares received as the result of issuer reorganization. 4. Rate shown is the 7-day yield as of June 30, 2008. 5. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 ----------------- ----------- ---------- ------------- Oppenheimer Institutional Money Market Fund, Cl. E 24,161,830 152,020,895 163,463,991 12,718,734
DIVIDEND VALUE INCOME ------------ ------------- Oppenheimer Institutional Money Market $ 12,718,734 $ 310,776 Fund, Cl. E
VALUATION INPUTS Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* ----------------- ---------------- Level 1--Quoted Prices $ 1,783,398,790 $ -- Level 2--Other Significant Observable Inputs 115,014,666 -- Level 3--Significant Unobservable Inputs -- -- ----------------- ---------------- Total $ 1,898,413,456 $ -- ================= ================
* Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. See the accompanying Notes for further discussion of the methods used in determining value of the Fund's investments, and a summary of changes to the valuation techniques, if any, during the reporting period. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F3 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited June 30, 2008 ASSETS Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $ 1,515,593,266) $ 1,885,694,722 Affiliated companies (cost $ 12,718,734) 12,718,734 ---------------- 1,898,413,456 ---------------- Cash 756,755 ---------------- Receivables and other assets: Investments sold 9,792,172 Dividends 1,618,320 Other 37,530 ---------------- Total assets 1,910,618,233 LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed 12,014,714 Investments purchased 7,838,956 Distribution and service plan fees 328,499 Shareholder communications 167,294 Trustees' compensation 31,079 Transfer and shareholder servicing agent fees 1,770 Other 27,299 ---------------- Total liabilities 20,409,611 ---------------- NET ASSETS $ 1,890,208,622 ================ COMPOSITION OF NET ASSETS Par value of shares of beneficial interest $ 44,053 ---------------- Additional paid-in capital 1,684,524,251 ---------------- Accumulated net investment income 1,064,030 ---------------- Accumulated net realized loss on investments and foreign currency transactions (165,587,760) ---------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 370,164,048 ---------------- NET ASSETS $ 1,890,208,622 ================ NET ASSET VALUE PER SHARE Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $1,381,205,372 and 32,116,900 shares of beneficial interest outstanding) $ 43.01 ---------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $509,003,250 and 11,936,238 shares of beneficial interest outstanding) $ 42.64
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F4 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA STATEMENT OF OPERATIONS Unaudited For the Six Months Ended June 30, 2008 INVESTMENT INCOME Dividends: Unaffiliated companies (net of foreign withholding taxes of $ 466,845) $ 9,151,694 Affiliated companies 310,776 ---------------- Interest 5,713 ---------------- Total investment income 9,468,183 EXPENSES Management fees 6,311,823 ---------------- Distribution and service plan fees--Service shares 633,540 ---------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,839 Service shares 4,940 ---------------- Shareholder communications: Non-Service shares 38,463 Service shares 13,395 ---------------- Trustees' compensation 21,420 ---------------- Custodian fees and expenses 13,646 ---------------- Administration service fees 750 ---------------- Other 32,910 ---------------- Total expenses 7,075,726 Less reduction to custodian expenses (2,455) Less waivers and reimbursements of expenses (9,422) ---------------- Net expenses 7,063,849 NET INVESTMENT INCOME 2,404,334 REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments from unaffiliated companies (34,644,843) Foreign currency transactions 8,450,507 ---------------- Net realized loss (26,194,336) ---------------- Net change in unrealized appreciation (depreciation) on: Investments (170,344,510) Translation of assets and liabilities denominated in foreign currencies 4,785,484 ---------------- Net change in unrealized appreciation (165,559,026) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (189,349,028) ================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F5 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 -------------- -------------- OPERATIONS Net investment income $ 2,404,334 $ 1,866,225 -------------- --------------- Net realized gain (loss) (26,194,336) 148,525,993 -------------- --------------- Net change in unrealized appreciation (165,559,026) 130,279,389 -------------- --------------- Net increase (decrease) in net assets resulting from operations (189,349,028) 280,671,607 DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income: Non-Service shares (1,851,681) (3,712,463) Service shares -- (46,654) -------------- --------------- (1,851,681) (3,759,117) BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (107,930,148) (179,103,584) Service shares 10,661,000 18,763,021 -------------- --------------- (97,269,148) (160,340,563) NET ASSETS Total increase (decrease) (288,469,857) 116,571,927 -------------- --------------- Beginning of period 2,178,678,479 2,062,106,552 -------------- --------------- End of period (including accumulated net investment income of $1,064,030 and $511,377, respectively) $1,890,208,622 $ 2,178,678,479 ============== ===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F6 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------ ------------- ---------- ---------- ---------- ----------- ---------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 47.18 $ 41.43 $ 38.52 $ 36.99 $ 34.70 $ 26.62 ---------- ---------- ---------- ---------- ---------- ---------- Income (loss) from investment operations: Net investment income .07(1) .07(1) .07(1) .18(1) .35(1,2) .12 Net realized and unrealized gain (loss) (4.18) 5.78 2.98 1.68 2.05 8.07 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations (4.11) 5.85 3.05 1.86 2.40 8.19 ---------- ---------- ---------- ---------- ---------- ---------- Dividends and/or distributions to shareholders: Dividends from net investment income (.06) (.10) (.14) (.33) (.11) (.11) ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 43.01 $ 47.18 $ 41.43 $ 38.52 $ 36.99 $ 34.70 ========== ========== ========== ========== ========== ========== TOTAL RETURN, AT NET ASSET VALUE (3) (8.72)% 14.15% 7.95% 5.10% 6.93% 30.94% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $1,381,206 $1,631,791 $1,598,967 $1,652,282 $1,770,273 $1,715,240 ---------- ---------- ---------- ---------- ---------- ---------- Average net assets (in thousands) $1,459,536 $1,631,686 $1,615,352 $1,658,910 $1,708,511 $1,468,297 ---------- ---------- ---------- ---------- ---------- ---------- Ratios to average net assets: (4) Net investment income 0.31% 0.15% 0.17% 0.47% 0.99%(2) 0.39% Total expenses 0.66%(5,6,7) 0.65%(5,6,7) 0.67%(5,6,7) 0.66%(6) 0.66%(6) 0.67%(6) ---------- ---------- ---------- ---------- ---------- ---------- Portfolio turnover rate 30% 59% 47% 70% 44% 48%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Net investment income per share and the net investment income ratio include $.16 and 0.43%, respectively, resulting from a special dividend from Microsoft Corp. in November 2004. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.66% Year Ended December 31, 2007 0.65% Year Ended December 31, 2006 0.67%
6. Reduction to custodian expenses less than 0.005%. 7. Waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F7 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA FINANCIAL HIGHLIGHTS Continued
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - --------------------------------- ------------- -------- -------- -------- -------- -------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 46.78 $ 41.09 $ 38.23 $ 36.73 $ 34.53 $ 26.53 ------------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income (loss) .01(1) (.05)(1) (.03)(1) .08(1) .29(1,2) .08 Net realized and unrealized gain (loss) (4.15) 5.74 2.96 1.69 1.99 8.02 ------------- -------- -------- -------- -------- -------- Total from investment operations (4.14) 5.69 2.93 1.77 2.28 8.10 ------------- -------- -------- -------- -------- -------- Dividends and/or distributions to shareholders: Dividends from net investment income -- --(3) (.07) (.27) (.08) (.10) ------------- -------- -------- -------- -------- -------- Net asset value, end of period $ 42.64 $ 46.78 $ 41.09 $ 38.23 $ 36.73 $ 34.53 ============= ======== ======== ======== ======== ======== TOTAL RETURN, AT NET ASSET VALUE (4) (8.85)% 13.86% 7.68% 4.87% 6.62% 30.69% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 509,003 $546,887 $463,140 $381,852 $248,649 $119,699 ------------- -------- -------- -------- -------- -------- Average net assets (in thousands) $ 514,463 $510,874 $426,539 $301,780 $184,273 $ 48,178 ------------- -------- -------- -------- -------- -------- Ratios to average net assets: (5) Net investment income (loss) 0.06% (0.10)% (0.08)% 0.20% 0.85%(2) 0.14% Total expenses 0.90%(6,7,8) 0.91%(6,7,8) 0.92%(6,7,8) 0.91%(7) 0.91%(7) 0.94%(7) ------------- -------- -------- -------- -------- -------- Portfolio turnover rate 30% 59% 47% 70% 44% 48%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Net investment income per share and the net investment income ratio include $.16 and 0.43%, respectively, resulting from a special dividend from Microsoft Corp. in November 2004. 3. Less than $0.005 per share. 4. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 5. Annualized for periods less than one full year. 6. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.90% Year Ended December 31, 2007 0.91% Year Ended December 31, 2006 0.92%
7. Reduction to custodian expenses less than 0.005%. 8. Voluntary waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F8 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Capital Appreciation Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation by investing in securities of well-known, established companies. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F9 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 1. SIGNIFICANT ACCOUNTING POLICIES Continued In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal F10 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund utilized $151,992,802 of capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October foreign currency losses of $32,575 and unused capital loss carryforwards as follows:
EXPIRING - -------- 2011 $ 96,270,872 2012 34,677,838 --------------- Total $ 130,948,710 ===============
As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $157,175,621 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 1,542,137,320 ================== Gross unrealized appreciation $ 455,575,695 Gross unrealized depreciation (99,299,559) ------------------ Net unrealized appreciation $ 356,276,136 ==================
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. F11 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 1. SIGNIFICANT ACCOUNTING POLICIES Continued INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT ----------- --------------- ------------- ----------------- NON-SERVICE SHARES Sold 1,207,721 $ 51,983,765 3,540,352 $ 160,454,788 Dividends and/or distributions reinvested 45,642 1,851,681 88,964 3,712,463 Redeemed (3,719,476) (161,765,594) (7,638,575) (343,270,835) ----------- --------------- ------------- ----------------- Net decrease (2,466,113) $ (107,930,148) (4,009,259) $ (179,103,584) =========== =============== ============= ================= SERVICE SHARES Sold 1,100,484 $ 47,430,143 2,132,039 $ 95,722,464 Dividends and/or distributions reinvested -- -- 1,121 46,477 Redeemed (854,390) (36,769,143) (1,714,792) (77,005,920) ----------- --------------- ------------- ----------------- Net increase 246,094 $ 10,661,000 418,368 $ 18,763,021 =========== =============== ============= =================
F12 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES ---------------- ----------------- Investment securities $ 598,804,178 $ 677,018,319
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE - ------------ Up to$200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,815 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $9,422 for IMMF management fees. F13 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. As of June 30, 2008, the Fund had no outstanding forward contracts. 6. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. 7. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F14 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER CAPITAL APPRECIATION FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Management Oppenheimer Commentaries High Income Fund/VA and A Series of Oppenheimer Variable Account Funds Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), redemption fees or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 5 | OPPENHEIMER HIGH INCOME FUND/VA FUND EXPENSES Continued - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - --------------------------------------------------------------------------------------------------- Non-Service Shares $ 1,000.00 $ 949.00 $ 3.69 - --------------------------------------------------------------------------------------------------- Service shares 1,000.00 948.00 4.90 - --------------------------------------------------------------------------------------------------- Class 3 1,000.00 949.20 3.69 - --------------------------------------------------------------------------------------------------- Class 4 1,000.00 947.50 4.85 HYPOTHTICAL (5% return before expenses) - --------------------------------------------------------------------------------------------------- Non-Service Shares 1,000.00 1,021.08 3.83 - --------------------------------------------------------------------------------------------------- Service shares 1,000.00 1,019.84 5.08 - --------------------------------------------------------------------------------------------------- Class 3 1,000.00 1,021.08 3.83 - --------------------------------------------------------------------------------------------------- Class 4 1,000.00 1,019.89 5.03
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------------- Non-Service Shares 0.76% - ------------------------------------------- Service shares 1.01 - ------------------------------------------- Class 3 0.76 - ------------------------------------------- Class 4 1.00
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 6 | OPPENHEIMER HIGH INCOME FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--2.9% - ---------------------------------------------------------------------------------------------------- Ameriquest Mortgage Securities, Inc., Home Equity Mtg. Obligations, Series 2005-R10, Cl. A2B, 2.703%, 12/25/35 1 $ 302,301 $ 286,670 - ---------------------------------------------------------------------------------------------------- Capital Auto Receivables Asset Trust 2008-2, Automobile Asset-Backed Securities, Series 2008-2, Cl. A2A, 3.78%, 3/15/11 1,710,000 1,706,059 - ---------------------------------------------------------------------------------------------------- Capital One Prime Auto Receivables Trust, Automobile Asset-Backed Certificates, Series 2005-1, Cl. A4, 2.491%, 4/15/11 1 5,052,569 5,041,100 - ---------------------------------------------------------------------------------------------------- DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates, Series 2008-B, Cl. A2A, 3.81%, 6/8/11 1,710,000 1,704,857 - ---------------------------------------------------------------------------------------------------- Mastr Asset-Backed Securities Trust 2005-WF1, Mtg. Pass-Through Certificates, Series 2005-WF1, Cl. A2C, 2.723%, 6/25/35 1 161,246 156,502 - ---------------------------------------------------------------------------------------------------- Soundview Home Loan Trust 2006-OPT5, Asset-Backed Certificates, Series 2006-OPT5, Cl. 2A2, 2.573%, 7/25/36 1 2,689,752 2,641,428 -------------- Total Asset-Backed Securities (Cost $ 11,574,871) 11,536,616 - ---------------------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS--12.9% - ---------------------------------------------------------------------------------------------------- Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates: Series 2008-1, Cl. AJ, 6.197%, 1/1/18 1 1,290,000 1,098,516 Series 2008-1, Cl. AM, 6.197%, 1/1/18 1 1,290,000 1,211,794 - ---------------------------------------------------------------------------------------------------- Bear Stearns ARM Trust 2006-4, Mtg. Pass-Through Certificates, Series 2006-4, Cl. 2A1, 5.794%, 10/25/36 1 108,878 96,693 - ---------------------------------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-HYB1, Mtg. Pass-Through Certificates, Series 2005-HYB1, Cl. 1A2, 4.995%, 3/25/35 1 872,393 828,773 - ---------------------------------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY1, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A1, 5.694%, 4/25/37 1 380,647 355,570 - ---------------------------------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY4, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 1A1, 6.094%, 9/25/47 1 4,687,088 4,218,380 - ---------------------------------------------------------------------------------------------------- Citigroup/Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. AJ, 5.398%, 12/1/49 1,110,000 866,059 - ---------------------------------------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2006-A5, Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 2006-A5, Cl. 1A1, 2.883%, 10/25/36 1 336,554 287,038 Series 2006-A5, Cl. 1A13, 2.933%, 10/25/36 1 175,926 147,027 - ---------------------------------------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2007-A2, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2007-A2, Cl. 1A5, 6%, 2/25/37 4,571,572 4,211,624 - ---------------------------------------------------------------------------------------------------- CWALT Alternative Loan Trust 2004-28CB, Mtg. Pass-Through Certificates, Series 2004-28CB, Cl. 2A4, 5.75%, 1/25/35 810,000 696,207 - ---------------------------------------------------------------------------------------------------- CWALT Alternative Loan Trust 2005-18CB, Mtg. Pass-Through Certificates, Series 2005-18CB, Cl. A8, 5.50%, 5/25/36 280,000 239,204 - ---------------------------------------------------------------------------------------------------- CWALT Alternative Loan Trust 2005-85CB, Mtg. Pass-Through Certificates, Series 2005-85CB, Cl. 2A3, 5.50%, 2/25/36 210,000 188,278 - ---------------------------------------------------------------------------------------------------- CWALT Alternative Loan Trust 2005-J1, Mtg. Pass-Through Certificates, Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 290,838 256,159 - ---------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 2319, Cl. PZ, 6.50%, 5/15/31 512,090 542,016 Series 2338, Cl. ZC, 6.50%, 7/15/31 445,258 467,632 Series 2344, Cl. ZD, 6.50%, 8/15/31 274,055 287,138 Series 2363, Cl. BZ, 6.50%, 9/15/31 545,506 572,713 Series 2457, Cl. PE, 6.50%, 6/15/32 468,314 486,667 - ---------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 2520, Cl. SE, 58.608%, 5/15/22 2 313,556 27,333 Series 2574, Cl. IN, 8.176%, 12/15/22 2 1,592,225 314,313 Series 2989, Cl. TS, 56.477%, 6/15/25 2 1,664,243 195,706 - ---------------------------------------------------------------------------------------------------- Federal National Mortgage Assn.: 5%, 12/25/17-3/25/18 2,223,271 2,221,012 5.50%, 11/1/33-3/1/38 904,046 894,309 5.50%, 12/1/37 3 2,875,017 2,837,963 - ---------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates, Trust 2001-74, Cl. QE, 6%, 12/25/31 844,683 869,088
F1 | OPPENHEIMER HIGH INCOME FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS Continued - ----------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2002-60, Cl. SM, 38.567%, 8/25/32 2 $ 775,197 $ 71,156 Trust 2002-7, Cl. SK, 41.226%, 1/25/32 2 302,351 31,134 Trust 2002-77, Cl. BS, 33.422%, 12/18/32 2 463,958 53,906 Trust 2002-77, Cl. JS, 33.35%, 12/18/32 2 800,106 94,224 Trust 2002-77, Cl. SA, 33.473%, 12/18/32 2 736,841 89,883 Trust 2002-90, Cl. SN, 38.565%, 8/25/32 2 398,330 36,400 Trust 2002-90, Cl. SY, 41.146%, 9/25/32 2 205,034 20,170 Trust 2003-14, Cl. OI, 12.342%, 3/25/33 2 288,883 68,894 Trust 2003-23, Cl. ES, 52.738%, 10/25/22 2 649,137 57,075 Trust 2003-52, Cl. NS, 45.309%, 6/25/23 2 692,818 73,303 Trust 2004-65, Cl. SA, 71.452%, 5/25/23 2 1,274,384 104,216 Trust 2005-86, Cl. AI, 11.13%, 10/1/35 2 298,250 78,728 Trust 2006-33, Cl. SP, 47.398%, 5/25/36 2 460,573 51,680 Trust 2006-42, Cl. CI, 33.62%, 6/25/36 2 2,407,072 225,627 Trust 2006-43, Cl. SJ, 50.991%, 6/25/36 2 937,009 89,703 Trust 2006-51, Cl. SA, 29.206%, 6/25/36 2 3,139,308 294,586 Trust 334, Cl. 4, 5.104%, 7/1/33 2 478,014 107,986 Trust 339, Cl. 12, 7.81%, 7/1/33 2 131,954 33,327 Trust 342, Cl. 2, 9.286%, 9/1/33 2 1,112,251 299,192 Trust 343, Cl. 13, 8.358%, 9/1/33 2 106,410 26,762 Trust 364, Cl. 16, 9.622%, 9/1/35 2 137,244 34,266 - ----------------------------------------------------------------------------------------------------- First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35 91,364 80,888 - ----------------------------------------------------------------------------------------------------- GMAC Mortgage Corp. Loan Trust, Mtg. Pass-Through Certificates, Series 2004-J4, Cl. A7, 5.50%, 9/25/34 190,000 171,562 - ----------------------------------------------------------------------------------------------------- GSR Mortgage Loan Trust 2004-5, Mtg. Pass-Through Certificates, Series 2004-5, Cl. 2A1, 4.485%, 5/1/34 1 3,202,900 3,142,339 - ----------------------------------------------------------------------------------------------------- GSR Mortgage Loan Trust 2005-4F, Mtg. Pass-Through Certificates, Series 2005-4F, Cl. 6A1, 6.50%, 2/25/35 227,547 218,003 - ----------------------------------------------------------------------------------------------------- GSR Mortgage Loan Trust 2005-AR7, Mtg. Pass-Through Certificates, Series 2005-AR7, Cl. 3A1, 5.149%, 11/25/35 1 1,423,452 1,359,076 - ----------------------------------------------------------------------------------------------------- GSR Mortgage Loan Trust 2007-AR1, Mgt. Pass-Through Certificates, Series 2007-AR1, Cl. 2A1, 5.998%, 3/1/37 1 873,686 806,753 - ----------------------------------------------------------------------------------------------------- JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2007-CB15, Cl. AJ, 5.502%, 6/1/47 430,000 337,855 Series 2008-C2, Cl. AJ, 6.799%, 2/1/51 2,170,000 2,000,132 - ----------------------------------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2003-C5, Commercial Mtg. Pass-Through Certificates, Series 2003-C5, Cl. A2, 3.478%, 7/15/27 814,954 813,377 - ----------------------------------------------------------------------------------------------------- Mastr Adjustable Rate Mortgages Trust 2006-2, Mtg. Pass-Through Certificates, Series 2006-2, Cl. 1A1, 4.857%, 4/1/36 1 1,399,964 1,378,026 - ----------------------------------------------------------------------------------------------------- Mastr Asset Securitization Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 2.933%, 10/25/36 1 4,265,222 3,865,417 - ----------------------------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 6.073%, 10/25/36 1 301,690 291,998 - ----------------------------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2007-2, Mtg. Pass-Through Certificates, Series 2007-2, Cl. 2A1, 5.995%, 6/25/37 1 374,082 359,651 - ----------------------------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.812%, 9/1/37 1,4 164,918 148,426 - ----------------------------------------------------------------------------------------------------- Merrill Lynch Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates, Series 2006-C1, Cl. AJ, 5.658%, 5/1/39 1 890,000 744,727 - ----------------------------------------------------------------------------------------------------- Morgan Stanley Mortgage Loan Trust 2006-AR, Mtg. Pass-Through Certificates, Series 2006-AR, Cl. 5A3, 5.427%, 6/25/36 1 130,000 122,473 - ----------------------------------------------------------------------------------------------------- STARM Mortgage Loan Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.658%, 6/1/37 1 227,602 213,413 - ----------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2003-AR10 Trust, Mtg. Pass-Through Certificates, Series 2003-AR10, Cl. A7, 4.056%, 10/1/33 1 850,000 830,973 - ----------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 5.75%, 10/25/36 1 440,761 408,999 - ----------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR14 Trust, Mtg. Pass-Through Certificates: Series 2006-AR14, Cl. 1A7, 5.645%, 11/1/36 1 1,745,203 1,273,034 Series 2006-AR14, Cl. 2A4, 5.759%, 11/1/36 1 467,346 327,142 - ----------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 2A1, 6.13%, 8/25/36 1 429,636 421,765
F2 | OPPENHEIMER HIGH INCOME FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS Continued - ---------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates: Series 2007-HY1, Cl. 1A2, 5.714%, 2/25/37 1,4 $ 82,813 $ 45,547 Series 2007-HY1, Cl. 2A4, 5.867%, 2/1/37 1,4 753,036 549,716 - ---------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY2 Trust, Mtg. Pass-Through Certificates, Series 2007-HY2, Cl. 1A2, 5.622%, 12/1/36 1,4 1,799,229 1,259,460 - ---------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY3 Trust, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 2A2, 5.665%, 3/1/37 1 220,578 160,394 - ---------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY4 Trust, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 5A1, 5.636%, 11/1/36 1 145,563 138,594 - ---------------------------------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 2A3, 5.658%, 5/1/37 1 153,775 143,507 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 4.365%, 9/1/34 1 75,867 73,866 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2005-AR2 Trust, Mtg. Pass-Through Certificates, Series 2005-AR2, Cl. 2A2, 4.542%, 3/25/35 1 61,508 59,473 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2005-AR4 Trust, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 2A2, 4.526%, 4/25/35 1 101,285 97,012 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR10 Trust, Mtg. Pass-Through Certificates, Series 2006-AR10, Cl. 4A1, 5.561%, 7/25/36 1 212,507 205,862 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 6.099%, 9/25/36 1 355,518 340,097 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A5, 5.106%, 3/25/36 1 429,042 415,935 - ---------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 1A3, 5.577%, 4/25/36 1 2,759,129 2,705,403 -------------- Total Mortgage-Backed Obligations (Cost $52,592,937) 51,870,325 - ---------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--88.6% - ---------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--27.5% - ---------------------------------------------------------------------------------------------------- AUTO COMPONENTS--1.5% Goodyear Tire & Rubber Co. (The): 7.857% Nts., 8/15/11 1,215,000 1,213,481 9% Sr. Unsec. Nts., 7/1/15 825,000 827,063 - ---------------------------------------------------------------------------------------------------- Lear Corp., 8.75% Sr. Unsec. Nts., Series B, 12/1/16 5,355,000 4,203,675 -------------- 6,244,219 - ---------------------------------------------------------------------------------------------------- AUTOMOBILES--1.9% Case New Holland, Inc., 7.125% Sr. Unsec. Nts., 3/1/14 4,340,000 4,274,900 - ---------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., 8% Bonds, 11/1/31 4,975,000 3,245,595 -------------- 7,520,495 - ---------------------------------------------------------------------------------------------------- DIVERSIFIED CONSUMER SERVICES--0.5% Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15 2,020,000 1,934,150 - ---------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--9.4% CCM Merger, Inc., 8% Unsec. Nts., 8/1/13 5 1,655,000 1,419,163 - ---------------------------------------------------------------------------------------------------- Greektown Holdings, Inc., 10.75% Sr. Nts., 12/1/13 5,6 2,235,000 1,665,075 - ---------------------------------------------------------------------------------------------------- Harrah's Operating Co., Inc., 10.75% Sr. Unsec. Nts., 2/1/16 5 4,070,000 3,398,450 - ---------------------------------------------------------------------------------------------------- Isle of Capri Casinos, Inc., 7% Sr. Unsec. Sub. Nts., 3/1/14 5,725,000 4,064,750 - ---------------------------------------------------------------------------------------------------- Mashantucket Pequot Tribe, 8.50% Bonds, Series A, 11/15/15 5 3,460,000 3,070,750 - ---------------------------------------------------------------------------------------------------- MGM Mirage, Inc.: 6.625% Sr. Unsec. Nts., 7/15/15 2,020,000 1,631,150 8.375% Sr. Unsec. Sub. Nts., 2/1/11 2,200,000 2,134,000 - ---------------------------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority: 6.125% Sr. Unsec. Sub. Nts., 2/15/13 1,925,000 1,761,375 8% Sr. Sub. Nts., 4/1/12 2,855,000 2,626,600 - ---------------------------------------------------------------------------------------------------- Park Place Entertainment Corp., 7.875% Sr. Sub. Nts., 3/15/10 5,445,000 4,982,175 - ---------------------------------------------------------------------------------------------------- Penn National Gaming, Inc.: 6.75% Sr. Unsec. Sub. Nts., 3/1/15 145,000 141,375 6.875% Sr. Sub. Nts., 12/1/11 4 150,000 151,125 - ---------------------------------------------------------------------------------------------------- Pinnacle Entertainment, Inc., 8.25% Sr. Unsec. Sub. Nts., 3/15/12 2,190,000 2,162,625 - ---------------------------------------------------------------------------------------------------- Pokagon Gaming Authority, 10.375% Sr. Nts., 6/15/14 5 569,000 613,098 - ---------------------------------------------------------------------------------------------------- Station Casinos, Inc., 6.50% Sr. Unsec. Sub. Nts., 2/1/14 3,905,000 2,264,900 - ---------------------------------------------------------------------------------------------------- Trump Entertainment Resorts, Inc., 8.50% Sec. Nts., 6/1/15 1,350,000 847,125
F3 | OPPENHEIMER HIGH INCOME FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE Continued - ---------------------------------------------------------------------------------------------------- Vail Resorts, Inc., 6.75% Sr. Sub. Nts., 2/15/14 $ 690,000 $ 655,500 - ---------------------------------------------------------------------------------------------------- Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625% Nts., 12/1/14 4,545,000 4,181,400 --------------- 37,770,636 - ---------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES--1.7% Centex Corp., 5.80% Sr. Unsec. Nts., 9/15/09 4 1,890,000 1,804,950 - ---------------------------------------------------------------------------------------------------- Jarden Corp., 7.50% Sr. Unsec. Sub. Nts., 5/1/17 1,615,000 1,413,125 - ---------------------------------------------------------------------------------------------------- K. Hovnanian Enterprises, Inc.: 7.75% Sr. Unsec. Sub. Nts., 5/15/13 655,000 422,475 8.875% Sr. Sub. Nts., 4/1/12 1,165,000 856,275 - ---------------------------------------------------------------------------------------------------- KB Home, 8.625% Sr. Sub. Nts., 12/15/08 150,000 151,500 - ---------------------------------------------------------------------------------------------------- Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,110,000 1,079,475 - ---------------------------------------------------------------------------------------------------- William Lyon Homes, Inc.: 7.50% Sr. Unsec. Nts., 2/15/14 220,000 113,300 10.75% Sr. Nts., 4/1/13 1,510,000 822,950 --------------- 6,664,050 - ---------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.3% Leslie's Poolmart, Inc., 7.75% Sr. Unsec. Nts., 2/1/13 4 1,370,000 1,287,800 - ---------------------------------------------------------------------------------------------------- MEDIA--9.4% Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 700,000 684,250 - ---------------------------------------------------------------------------------------------------- AMC Entertainment, Inc., 8% Sr. Unsec. Sub. Nts., 3/1/14 990,000 883,575 - ---------------------------------------------------------------------------------------------------- American Media Operations, Inc.: 8.875% Sr. Unsec. Sub. Nts., 1/15/11 4 32,724 27,488 8.875% Sr. Unsec. Sub. Nts., 1/15/11 900,000 724,500 10.25% Sr. Unsec. Sub. Nts., Series B, 5/1/09 5 52,722 42,705 10.25% Sr. Unsec. Sub. Nts., Series B, 5/1/09 1,450,000 1,170,875 - ---------------------------------------------------------------------------------------------------- CCH I Holdings LLC/CCH I Holdings Capital Corp., 11% Sr. Sec. Nts., 10/1/15 2,510,000 1,873,088 - ---------------------------------------------------------------------------------------------------- Cinemark, Inc., 0%/9.75% Sr. Unsec. Nts., 3/15/14 7 2,525,000 2,411,375 - ---------------------------------------------------------------------------------------------------- Dex Media West LLC/Dex Media West Finance Co.: 8.50% Sr. Nts., 8/15/10 700,000 694,750 9.875% Sr. Sub. Nts., 8/15/13 1,772,000 1,599,230 - ---------------------------------------------------------------------------------------------------- Dex Media, Inc., 0%/9% Unsec. Nts., 11/15/13 7 500,000 360,000 - ---------------------------------------------------------------------------------------------------- EchoStar DBS Corp., 6.375% Sr. Unsec. Nts., 10/1/11 2,885,000 2,791,238 - ---------------------------------------------------------------------------------------------------- Idearc, Inc., 8% Sr. Unsec. Nts., 11/15/16 3,045,000 1,929,769 - ---------------------------------------------------------------------------------------------------- Lamar Media Corp.: 6.625% Sr. Unsec. Sub. Nts., 8/15/15 1,357,000 1,241,655 7.25% Sr. Unsec. Sub. Nts., 1/1/13 200,000 193,250 - ---------------------------------------------------------------------------------------------------- Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 785,000 722,200 - ---------------------------------------------------------------------------------------------------- Marquee Holdings, Inc., 9.505% Sr. Nts., 8/15/14 1 2,180,000 1,722,200 - ---------------------------------------------------------------------------------------------------- MediaNews Group, Inc.: 6.375% Sr. Sub. Nts., 4/1/14 1,460,000 605,900 6.875% Sr. Unsec. Sub. Nts., 10/1/13 2,160,000 896,400 - ---------------------------------------------------------------------------------------------------- Nielsen Finance LLC/Nielsen Finance Co.: 0%/12.50% Sr. Unsec. Sub. Disc. Nts., 8/1/16 7 1,090,000 754,825 10% Sr. Unsec. Nts., 8/1/14 3,230,000 3,270,375 - ---------------------------------------------------------------------------------------------------- NTL Cable plc, 9.125% Sr. Nts., 8/15/16 2,745,000 2,587,163 - ---------------------------------------------------------------------------------------------------- R.H. Donnelley Corp.: 6.875% Sr. Disc. Nts., Series A-2, 1/15/13 1,960,000 1,176,000 6.875% Sr. Nts., 1/15/13 1,780,000 1,068,000 - ---------------------------------------------------------------------------------------------------- Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 800,000 682,000 - ---------------------------------------------------------------------------------------------------- Rainbow National Services LLC, 8.75% Sr. Nts., 9/1/12 5 1,040,000 1,060,800 - ---------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., 8% Sr. Unsec. Sub. Nts., 3/15/12 1,907,000 1,926,070 - ---------------------------------------------------------------------------------------------------- Videotron Ltd., 9.125% Sr. Nts., 4/15/18 5 970,000 1,018,500 - ---------------------------------------------------------------------------------------------------- Virgin Media Finance plc, 8.75% Sr. Unsec. Nts., 4/15/14 1,685,000 1,592,325 - ---------------------------------------------------------------------------------------------------- Warner Music Group Corp., 7.375% Sr. Sub. Bonds, 4/15/14 800,000 669,000 - ---------------------------------------------------------------------------------------------------- WMG Holdings Corp., 0%/9.50% Sr. Nts., 12/15/14 7 2,365,000 1,501,775 --------------- 37,881,281 - ---------------------------------------------------------------------------------------------------- MULTILINE RETAIL--0.3% Dillard's, Inc., 6.625% Unsec. Nts., 11/15/08 4 1,125,000 1,126,406 - ---------------------------------------------------------------------------------------------------- SPECIALTY RETAIL--1.5% Claire's Stores, Inc., 10.50% Sr. Unsec. Sub. Nts., 6/1/17 5,130,000 2,116,125 - ---------------------------------------------------------------------------------------------------- GameStop Corp., 8% Sr. Unsec. Nts., 10/1/12 900,000 922,500 - ---------------------------------------------------------------------------------------------------- Sally Holdings LLC: 9.25% Sr. Unsec. Nts., 11/15/14 1,630,000 1,572,950 10.50% Sr. Unsec. Sub. Nts., 11/15/16 1,470,000 1,407,525 --------------- 6,019,100 - ---------------------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--1.0% Invista, Inc., 9.25% Sr. Nts., 5/1/12 5 1,300,000 1,335,750 - ---------------------------------------------------------------------------------------------------- Levi Strauss & Co., 9.75% Sr. Unsec. Unsub. Nts., 1/15/15 2,865,000 2,893,650 --------------- 4,229,400
F4 | OPPENHEIMER HIGH INCOME FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- CONSUMER STAPLES--5.7% - ---------------------------------------------------------------------------------------------------- BEVERAGES--0.8% Constellation Brands, Inc.: 8.125% Sr. Sub. Nts., 1/15/12 $ 1,965,000 $ 1,965,000 8.375% Sr. Nts., 12/15/14 1,095,000 1,114,163 --------------- 3,079,163 - ---------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--2.0% Albertson's, Inc., 8% Sr. Unsec. Debs., 5/1/31 3,330,000 3,428,791 - ---------------------------------------------------------------------------------------------------- Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 3,905,000 4,614,015 - ---------------------------------------------------------------------------------------------------- Real Time Data Co., 11% Nts., 5/31/09 4,6,8 476,601 -- --------------- 8,042,806 - ---------------------------------------------------------------------------------------------------- FOOD PRODUCTS--1.8% Del Monte Corp., 8.625% Sr. Sub. Nts., 12/15/12 1,325,000 1,351,500 - ---------------------------------------------------------------------------------------------------- Dole Food Co., Inc.: 7.25% Sr. Unsec. Nts., 6/15/10 420,000 382,200 8.625% Sr. Nts., 5/1/09 687,000 657,803 8.875% Sr. Unsec. Nts., 3/15/11 146,000 130,670 - ---------------------------------------------------------------------------------------------------- Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp., 10.625% Sr. Sub. Nts., 4/1/17 3,275,000 2,636,375 - ---------------------------------------------------------------------------------------------------- Smithfield Foods, Inc.: 7% Sr. Nts., 8/1/11 4 1,330,000 1,220,275 8% Sr. Nts., Series B, 10/15/09 900,000 900,000 --------------- 7,278,823 - ---------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--0.2% Church & Dwight Co., Inc., 6% Sr. Unsec. Sub. Nts., 12/15/12 1,090,000 1,051,850 - ---------------------------------------------------------------------------------------------------- PERSONAL PRODUCTS--0.3% Elizabeth Arden, Inc., 7.75% Sr. Unsec. Sub. Nts., 1/15/14 1,340,000 1,262,950 - ---------------------------------------------------------------------------------------------------- TOBACCO--0.6% Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13 2,265,000 2,353,781 - ---------------------------------------------------------------------------------------------------- ENERGY--12.8% - ---------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--1.5% Helix Energy Solutions Group, Inc., 9.50% Sr. Unsec. Nts., 1/15/16 5 2,200,000 2,266,000 - ---------------------------------------------------------------------------------------------------- Key Energy Services, Inc., 8.375% Sr. Nts., 12/1/14 5 2,265,000 2,321,625 - ---------------------------------------------------------------------------------------------------- Pride International, Inc., 7.375% Sr. Unsec. Nts., 7/15/14 1,385,000 1,388,463 --------------- 5,976,088 - ---------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--11.3% Atlas Energy Resources LLC, 10.75% Sr. Nts., 2/1/18 5 3,035,000 3,171,575 - ---------------------------------------------------------------------------------------------------- Atlas Pipeline Partners LP, 8.125% Sr. Unsec. Nts., 12/15/15 2,185,000 2,157,688 - ---------------------------------------------------------------------------------------------------- Berry Petroleum Co., 8.25% Sr. Sub. Nts., 11/1/16 1,035,000 1,055,700 - ---------------------------------------------------------------------------------------------------- Chesapeake Energy Corp., 6.875% Sr. Unsec. Nts., 1/15/16 4,460,000 4,326,200 - ---------------------------------------------------------------------------------------------------- Copano Energy LLC/Copano Energy Finance Corp., 7.75% Sr. Nts., 6/1/18 5 2,935,000 2,876,300 - ---------------------------------------------------------------------------------------------------- Denbury Resources, Inc., 7.50% Sr. Sub. Nts., 12/15/15 1,335,000 1,335,000 - ---------------------------------------------------------------------------------------------------- Enterprise Products Operating LP, 8.375% Jr. Sub. Nts., 8/1/66 1 4,645,000 4,654,165 - ---------------------------------------------------------------------------------------------------- Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 1,945,000 1,964,450 - ---------------------------------------------------------------------------------------------------- Kinder Morgan Energy Partners LP, 7.30% Sr. Unsec. Nts., 8/15/33 4,022,000 4,131,929 - ---------------------------------------------------------------------------------------------------- MarkWest Energy Partners LP, 8.75% Sr. Nts., 4/15/18 5 410,000 421,275 - ---------------------------------------------------------------------------------------------------- Newfield Exploration Co., 6.625% Sr. Unsec. Sub. Nts., 9/1/14 2,235,000 2,112,075 - ---------------------------------------------------------------------------------------------------- Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B, 3/15/13 3,575,000 3,601,813 - ---------------------------------------------------------------------------------------------------- Quicksilver Resources, Inc., 7.125% Sr. Sub. Nts., 4/1/16 2,215,000 2,073,794 - ---------------------------------------------------------------------------------------------------- Sabine Pass LNG LP: 7.25% Sr. Sec. Nts., 11/30/13 1,520,000 1,390,800 7.50% Sr. Sec. Nts., 11/30/16 2,200,000 1,991,000 - ---------------------------------------------------------------------------------------------------- SandRidge Energy, Inc., 8% Sr. Nts., 6/1/18 5 520,000 525,200 - ---------------------------------------------------------------------------------------------------- Southwestern Energy Co., 7.50% Sr. Nts., 2/1/18 5 965,000 998,670 - ---------------------------------------------------------------------------------------------------- Tesoro Corp., 6.625% Sr. Unsec. Nts., 11/1/15 2,195,000 2,035,863 - ---------------------------------------------------------------------------------------------------- Williams Cos., Inc. (The): 7.625% Nts., 7/15/19 2,000,000 2,110,000 8.125% Sr. Unsec. Nts., 3/15/12 2,020,000 2,131,100 - ---------------------------------------------------------------------------------------------------- Williams Holdings of Delaware, Inc., 6.50% Nts., 12/1/08 300,000 300,375 --------------- 45,364,972 - ---------------------------------------------------------------------------------------------------- FINANCIALS--10.6% - ---------------------------------------------------------------------------------------------------- CAPITAL MARKETS--2.3% Berry Plastics Holding Corp., 8.875% Sr. Sec. Nts., 9/15/14 3,565,000 3,101,550 - ---------------------------------------------------------------------------------------------------- Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 6,225,000 5,298,440 - ---------------------------------------------------------------------------------------------------- Travelport LLC, 11.875% Sr. Unsec. Sub. Nts., 9/1/16 990,000 816,750 --------------- 9,216,740
F5 | OPPENHEIMER HIGH INCOME FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- COMMERCIAL BANKS--5.5% Barclays Bank plc, 6.278% Perpetual Bonds 9 $ 9,640,000 $ 7,964,279 - ---------------------------------------------------------------------------------------------------- HBOS plc, 6.413% Sub. Perpetual Bonds, Series A 5, 9 10,200,000 7,156,830 - ---------------------------------------------------------------------------------------------------- HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35 1 8,900,000 7,150,438 --------------- 22,271,547 - ---------------------------------------------------------------------------------------------------- CONSUMER FINANCE--0.8% SLM Corp., 4.50% Nts., Series A, 7/26/10 3,335,000 3,087,850 - ---------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--1.5% AAC Group Holding Corp., 0%/10.25% Sr. Unsec. Disc. Nts., 10/1/12 7 200,000 192,000 - ---------------------------------------------------------------------------------------------------- Bank of America Corp.: 8% Unsec. Perpetual Bonds, Series K 9 830,000 779,569 8.125% Perpetual Bonds, Series M 9 285,000 269,755 - ---------------------------------------------------------------------------------------------------- Citigroup, Inc.: 8.30% Jr. Sub. Bonds, 12/21/57 1 585,000 554,884 8.40% Perpetual Bonds, Series E 9 2,345,000 2,232,112 - ---------------------------------------------------------------------------------------------------- JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1 9 2,195,000 2,064,244 --------------- 6,092,564 - ---------------------------------------------------------------------------------------------------- INSURANCE--0.4% MetLife, Inc., 6.40% Jr. Unsec. Sub. Bonds, 12/15/66 1 1,210,000 1,061,837 - ---------------------------------------------------------------------------------------------------- Prudential Holdings LLC, 8.695% Bonds, Series C, 12/18/23 5 210,000 244,780 - ---------------------------------------------------------------------------------------------------- Prudential Insurance Co. of America, 8.30% Nts., 7/1/25 5 160,000 175,584 --------------- 1,482,201 - ---------------------------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS--0.1% iStar Financial, Inc., 3.326% Sr. Unsec. Nts., 3/16/09 1 415,000 393,084 - ---------------------------------------------------------------------------------------------------- HEALTH CARE--8.1% - ---------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--1.7% Bausch & Lomb, Inc., 9.875% Sr. Unsec. Nts., 11/1/15 5 1,190,000 1,198,925 - ---------------------------------------------------------------------------------------------------- Biomet, Inc., 10% Sr. Unsec. Bonds, 10/15/17 5 1,290,000 1,383,525 - ---------------------------------------------------------------------------------------------------- Novelis, Inc., 7.25% Sr. Unsec. Nts., 2/15/15 1 2,450,000 2,327,500 - ---------------------------------------------------------------------------------------------------- Universal Hospital Services, Inc., 8.50% Sr. Sec. Nts., 6/1/15 8 1,850,000 1,859,250 --------------- 6,769,200 - ---------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--5.8% Catalent Pharma Solutions, Inc., 9.50% Sr. Unsec. Nts., 4/15/15 8 2,405,000 2,164,500 - ---------------------------------------------------------------------------------------------------- Community Health Systems, Inc., 8.875% Sr. Unsec. Nts., 7/15/15 1,540,000 1,557,325 - ---------------------------------------------------------------------------------------------------- DaVita, Inc., 6.625% Sr. Unsec. Nts., 3/15/13 3,860,000 3,724,900 - ---------------------------------------------------------------------------------------------------- Fresenius Medical Care Capital Trust IV, 7.875% Sr. Sub. Nts., 6/15/11 1,305,000 1,357,200 - ---------------------------------------------------------------------------------------------------- HCA, Inc.: 6.375% Nts., 1/15/15 3,340,000 2,788,900 9.25% Sr. Sec. Nts., 11/15/16 1,545,000 1,595,213 - ---------------------------------------------------------------------------------------------------- HealthSouth Corp., 10.75% Sr. Unsec. Nts., 6/15/16 2,185,000 2,359,800 - ---------------------------------------------------------------------------------------------------- Omnicare, Inc.: 6.75% Sr. Sub. Nts., 12/15/13 185,000 174,825 6.875% Sr. Sub. Nts., 12/15/15 285,000 265,050 - ---------------------------------------------------------------------------------------------------- Select Medical Corp., 7.625% Sr. Unsec. Sub. Nts., 2/1/15 2,410,000 2,126,825 - ---------------------------------------------------------------------------------------------------- US Oncology Holdings, Inc., 7.949% Sr. Unsec. Nts., 3/15/12 1,8 620,000 492,900 - ---------------------------------------------------------------------------------------------------- US Oncology, Inc., 9% Sr. Unsec. Nts., 8/15/12 1,995,000 1,990,013 - ---------------------------------------------------------------------------------------------------- Vanguard Health Holding Co. I LLC, 0%/11.25% Sr. Disc. Nts., 10/1/15 7 3,085,000 2,730,225 --------------- 23,327,676 - ---------------------------------------------------------------------------------------------------- PHARMACEUTICALS--0.6% ReAble Therapeutics Finance LLC, 10.875% Sr. Unsec. Nts., 11/15/14 5 2,325,000 2,330,813 - ---------------------------------------------------------------------------------------------------- INDUSTRIALS--5.3% - ---------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.8% Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16 2,270,000 2,213,250 - ---------------------------------------------------------------------------------------------------- BE Aerospace, Inc., 8.50% Sr. Unsec. Nts., 7/1/18 10 735,000 737,756 - ---------------------------------------------------------------------------------------------------- DRS Technologies, Inc., 6.625% Sr. Nts., 2/1/16 2,185,000 2,228,700 - ---------------------------------------------------------------------------------------------------- L-3 Communications Corp.: 5.875% Sr. Sub. Nts., 1/15/15 1,060,000 983,150 6.375% Sr. Unsec. Sub. Nts., Series B, 10/15/15 1,160,000 1,090,400 - ---------------------------------------------------------------------------------------------------- Moog, Inc., 7.25% Sr. Sub. Nts., 6/15/18 210,000 208,950 --------------- 7,462,206 - ---------------------------------------------------------------------------------------------------- AIRLINES--0.0% ATA Holdings Corp., 13% Sr. Unsec. Nts., 2/1/09 4,6,11 1,575,000 -- - ---------------------------------------------------------------------------------------------------- BUILDING PRODUCTS--0.2% Dayton Superior Corp., 13% Sr. Unsec. Sub. Nts., 6/15/09 80,000 65,400 - ---------------------------------------------------------------------------------------------------- Nortek, Inc., 8.50% Sr. Unsec. Unsub. Nts., 9/1/14 1,395,000 899,775 --------------- 965,175
F6 | OPPENHEIMER HIGH INCOME FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--1.4% Allied Waste North America, Inc., 7.375% Sr. Sec. Nts., Series B, 4/15/14 $ 3,370,000 $ 3,437,400 - ---------------------------------------------------------------------------------------------------- American Pad & Paper Co., 13% Sr. Sub. Nts., Series B, 11/15/05 4,6,11 200,000 -- - ---------------------------------------------------------------------------------------------------- Corrections Corp. of America: 6.25% Sr. Unsec. Sub. Nts., 3/15/13 490,000 474,075 7.50% Sr. Nts., 5/1/11 1,765,000 1,782,650 --------------- 5,694,125 - ---------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--0.1% MetLife Capital Trust X, 9.25% Sec. Bonds, 4/8/68 1 200,000 216,325 - ---------------------------------------------------------------------------------------------------- ROAD & RAIL--1.0% Avis Budget Car Rental LLC, 7.625% Sr. Unsec. Unsub. Nts., 5/15/14 2,365,000 1,903,825 - ---------------------------------------------------------------------------------------------------- Hertz Corp.: 8.875% Sr. Unsec. Nts., 1/1/14 90,000 82,800 10.50% Sr. Unsec. Sub. Nts., 1/1/16 1,570,000 1,436,550 - ---------------------------------------------------------------------------------------------------- Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 500,000 507,500 - ---------------------------------------------------------------------------------------------------- Stena AB, 7.50% Sr. Unsec. Nts., 11/1/13 155,000 153,644 --------------- 4,084,319 - ---------------------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.8% United Rentals, Inc., 7% Sr. Sub. Nts., 2/15/14 3,930,000 3,065,400 - ---------------------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--1.9% - ---------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--0.2% NXP BV/NXP Funding LLC, 9.50% Sr. Unsec. Unsub. Nts., 10/15/15 1,035,000 903,038 - ---------------------------------------------------------------------------------------------------- Orion Network Systems, Inc., 12.50% Sr. Unsub. Disc. Nts., 1/15/07 4,6 1,150,000 12 --------------- 903,050 - ---------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--0.2% RBS Global & Rexnord Corp., 11.75% Sr. Unsec. Sub. Nts., 8/1/16 820,000 791,300 - ---------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--0.0% Exodus Communications, Inc., 10.75% Sr. Nts., 12/15/09 4,6,11 844,866 EUR -- - ---------------------------------------------------------------------------------------------------- NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 4,6,11 240,208 -- --------------- -- - ---------------------------------------------------------------------------------------------------- IT SERVICES--1.5% Fiserv, Inc., 6.125% Sr. Unsec. Unsub. Nts., 11/20/12 3,875,000 3,899,757 - ---------------------------------------------------------------------------------------------------- Iron Mountain, Inc., 8.625% Sr. Unsec. Sub. Nts., 4/1/13 2,120,000 2,141,200 --------------- 6,040,957 - ---------------------------------------------------------------------------------------------------- MATERIALS--7.1% - ---------------------------------------------------------------------------------------------------- CHEMICALS--2.0% Huntsman International LLC: 7.375% Sr. Unsub. Nts., 1/15/15 420,000 369,600 7.875% Sr. Unsec. Sub. Nts., 11/15/14 260,000 239,200 - ---------------------------------------------------------------------------------------------------- Huntsman LLC: 11.50% Sr. Unsec. Nts., 7/15/12 1 332,000 346,110 11.625% Sr. Unsec. Nts., 10/15/10 4 37,000 38,295 - ---------------------------------------------------------------------------------------------------- Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 4 800,000 844,000 - ---------------------------------------------------------------------------------------------------- Momentive Performance Materials, Inc., 9.75% Sr. Unsec. Nts., 12/1/14 5 4,815,000 4,140,900 - ---------------------------------------------------------------------------------------------------- Mosaic Co. (The): 7.375% Sr. Nts., 12/1/14 5 1,885,000 1,979,250 7.625% Sr. Nts., 12/1/16 5 255,000 272,850 --------------- 8,230,205 - ---------------------------------------------------------------------------------------------------- CONSTRUCTION MATERIALS--0.3% NTK Holdings, Inc., 0%/10.75% Sr. Unsec. Nts., 3/1/14 7 2,795,000 1,285,700 - ---------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING--2.2% Crown Americas, Inc., 7.75% Sr. Nts., 11/15/15 3,255,000 3,271,275 - ---------------------------------------------------------------------------------------------------- Graham Packaging Co., Inc., 9.875% Sr. Unsec. Sub. Nts., 10/15/14 2,755,000 2,451,950 - ---------------------------------------------------------------------------------------------------- Graphic Packaging International Corp., 8.50% Sr. Nts., 8/15/11 3,260,000 3,170,350 --------------- 8,893,575 - ---------------------------------------------------------------------------------------------------- METALS & MINING--2.0% Freeport-McMoRan Copper & Gold, Inc., 8.375% Sr. Nts., 4/1/17 5,120,000 5,409,997 - ---------------------------------------------------------------------------------------------------- Ispat Inland ULC, 9.75% Sr. Sec. Nts., 4/1/14 1,600,000 1,710,541 - ---------------------------------------------------------------------------------------------------- Steel Dynamics, Inc., 7.375% Sr. Unsec. Unsub. Nts., 11/1/12 5 825,000 829,125 --------------- 7,949,663 - ---------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.6% NewPage Corp., 10% Sr. Sec. Nts., 5/1/12 2,200,000 2,238,500 - ---------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--8.7% - ---------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--5.1% Citizens Communications Co., 6.25% Sr. Nts., 1/15/13 5,745,000 5,357,213 - ---------------------------------------------------------------------------------------------------- FairPoint Communications, Inc., 13.125% Sr. Nts., 4/1/18 3,180,000 3,132,300 - ---------------------------------------------------------------------------------------------------- PSINet, Inc., 10.50% Sr. Unsec. Nts., 12/1/06 4,6,11 1,000,000 EUR -- - ---------------------------------------------------------------------------------------------------- Qwest Corp., 8.875% Unsec. Unsub. Nts., 3/15/12 5,340,000 5,473,500 - ---------------------------------------------------------------------------------------------------- Teligent, Inc., 11.50% Sr. Nts., 12/1/08 4,6,11 400,000 --
F7 | OPPENHEIMER HIGH INCOME FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Continued West Corp., 9.50% Sr. Unsec. Nts., 10/15/14 $ 1,140,000 $ 1,031,700 - ----------------------------------------------------------------------------------------------------- Windstream Corp.: 8.125% Sr. Unsec. Unsub. Nts., 8/1/13 3,235,000 3,243,088 8.625% Sr. Unsec. Unsub. Nts., 8/1/16 2,090,000 2,095,225 - ----------------------------------------------------------------------------------------------------- Winstar Communications, Inc., 12.75% Sr. Nts., 4/15/10 4,6,11 1,000,000 -- ---------------- 20,333,026 - ----------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--3.6% American Tower Corp.: 7.125% Sr. Unsec. Nts., 10/15/12 335,000 340,025 7.50% Sr. Nts., 5/1/12 2,760,000 2,801,400 - ----------------------------------------------------------------------------------------------------- CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts., 10/1/07 4,6,11 1,834,000 -- - ----------------------------------------------------------------------------------------------------- Nextel Communications, Inc., 7.375% Sr. Nts., Series D, 8/1/15 9,870,000 8,197,410 - ----------------------------------------------------------------------------------------------------- Rural Cellular Corp., 9.875% Sr. Nts., 2/1/10 4 600,000 613,500 - ----------------------------------------------------------------------------------------------------- Sprint Capital Corp., 8.75% Nts., 3/15/32 2,635,000 2,515,898 ---------------- 14,468,233 - ----------------------------------------------------------------------------------------------------- UTILITIES--0.9% - ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.8% Edison Mission Energy, 7% Sr. Unsec. Nts., 5/15/17 3,475,000 3,266,500 - ----------------------------------------------------------------------------------------------------- ENERGY TRADERS--0.1% AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A, 11/30/19 347,815 362,589 ---------------- Total Corporate Bonds and Notes (Cost $ 390,261,610) 356,310,493
SHARES - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- PREFERRED STOCKS--1.2% - ----------------------------------------------------------------------------------------------------- AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg. 4,8,11 13,764 -- - ----------------------------------------------------------------------------------------------------- Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 4,11 8,000 -- - ----------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., 8.25% Non-Cum. Sub., Series S, Non-Vtg. 160,075 3,673,721 - ----------------------------------------------------------------------------------------------------- ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 4,8,11 342 -- - ----------------------------------------------------------------------------------------------------- Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 4 10,000 972,500 ---------------- Total Preferred Stocks (Cost $5,986,286) 4,646,221 - ----------------------------------------------------------------------------------------------------- COMMON STOCKS--1.8% - ----------------------------------------------------------------------------------------------------- AT&T, Inc. 58,141 $ 1,958,770 - ----------------------------------------------------------------------------------------------------- ATA Holdings Corp. 4,11 3,690 3,690 - ----------------------------------------------------------------------------------------------------- Constellation Energy Group, Inc. 40,086 3,291,061 - ----------------------------------------------------------------------------------------------------- Global Aero Logistics, Inc. 4,11 957 957 - ----------------------------------------------------------------------------------------------------- Public Service Enterprise Group, Inc. 25,965 1,192,572 - ----------------------------------------------------------------------------------------------------- Revlon, Inc., Cl. A 11 1,050,542 892,961 ---------------- Total Common Stocks (Cost $8,542,998) 7,340,011
UNITS - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - ----------------------------------------------------------------------------------------------------- DeCrane Aircraft Holdings, Inc. Wts., Strike Price $35.65, Exp. 9/30/08 4,11 1,750 -- - ----------------------------------------------------------------------------------------------------- Global Aero Logistics, Inc. Wts., Strike Price $10, Exp. 2/28/11 4,11 570 6 ---------------- Total Rights, Warrants and Certificates (Cost $ 4,339) 6
SHARES - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- INVESTMENT COMPANY--0.2% - ----------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 12,13 (Cost $ 842,195) 842,195 842,195 - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $469,805,236) 107.6% 432,545,867 - ----------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (7.6) (30,444,819) ----------------------------- NET ASSETS 100.0% $402,101,048 =============================
FOOTNOTES TO STATEMENT OF INVESTMENTS Principal amount is reported in U.S. Dollars, except for those denoted in the following currency: EUR Euro 1. Represents the current interest rate for a variable or increasing rate security. 2. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $2,479,570 or 0.62% of the Fund's net assets as of June 30, 2008. 3. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $2,837,963. See Note 5 of accompanying Notes. F8 | OPPENHEIMER HIGH INCOME FUND/VA 4. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $10,094,153, which represents 2.51% of the Fund's net assets. See Note 7 of accompanying Notes. 5. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $45,917,518 or 11.42% of the Fund's net assets as of June 30, 2008. 6. Issue is in default. See Note 1 of accompanying Notes. 7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 8. Interest or dividend is paid-in-kind, when applicable. 9. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. 10. When-issued security or delayed delivery to be delivered and settled after June 30, 2008. See Note 1 of accompanying Notes. 11. Non-income producing security. 12. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ----------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 10,989,620 132,347,401 142,494,826 842,195
DIVIDEND VALUE INCOME - ----------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $ 842,195 $ 223,548
13. Rate shown is the 7-day yield as of June 30, 2008. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1--quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2--inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3--unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* - ------------------------------------------------------------------------------------------------------------ Level 1--Quoted Prices $ 7,284,598 $ 5,871 Level 2--Other Significant Observable Inputs 422,933,995 (36,329,558) Level 3--Significant Unobservable Inputs 2,327,274 ----------------------------------------- Total $ 432,545,867 $ (36,323,687) =========================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. - -------------------------------------------------------------------------------- FUTURES CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - ----------------------------------------------------------------------------------------------------------------------- Standard & Poor's 500 Index Sell 17 9/18/08 $ 5,444,675 $ 316,144 U.S. Long Bonds Sell 104 9/19/08 12,021,750 (165,383) U.S. Treasury Nts., 2 yr. Sell 96 9/30/08 20,275,500 (74,463) U.S. Treasury Nts., 2 yr. Buy 49 9/30/08 10,348,953 13,236 U.S. Treasury Nts., 5 yr. Sell 108 9/30/08 11,939,906 16,922 U.S. Treasury Nts., 10 yr. Sell 96 9/19/08 10,936,500 (96,038) U.S. Treasury Nts., 10 yr. Buy 329 9/19/08 37,480,297 140,104 ----------- $ 150,522 ===========
F9 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Barclays Bank plc: Beazer Homes USA, Inc. Sell $ 890 4.7000% 9/20/08 $ -- $ (12,028) Capmark Financial Group, Inc. Sell 160 5.0000 6/20/12 44,800 (24,434) Citigroup, Inc. Sell 4,870 3.2500 9/20/08 -- (125,928) Dillard's, Inc. Sell 745 1.9000 12/20/08 -- (7,183) HCP, Inc. Sell 285 4.6000 3/20/09 -- 290 iStar Financial, Inc. Sell 345 4.4000 12/20/12 -- (28,551) Kohl's Corp. Sell 205 0.9000 6/20/13 -- (2,706) Kohl's Corp. Buy 205 1.0400 6/20/18 -- 4,317 Kohl's Corp. Sell 210 1.0800 6/20/13 -- (1,121) Kohl's Corp. Buy 210 1.1800 6/20/18 -- 2,250 Merrill Lynch & Co., Inc. Sell 1,455 0.6800 9/20/08 -- 211 Six Flags, Inc. Sell 590 7.0000 9/20/08 -- (6,322) Six Flags, Inc. Sell 375 8.2500 12/20/08 -- (27,572) Station Casinos, Inc. Sell 505 5.0000 6/20/13 90,900 (101,759) XL Capital Ltd. Sell 425 3.5500 9/20/09 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Citibank NA, New York: Ambac Assurance Corp. Sell 4,225 8.4000 12/20/08 -- (360,528) Amkor Technology, Inc. Sell 260 2.0500 9/20/08 -- (137) Cablevision Systems Corp. Sell 160 3.1000 12/20/10 -- (2,336) Capmark Financial Group, Inc. Sell 3,300 7.1250 12/20/12 -- (290,628) Capmark Financial Group, Inc. Sell 1,235 9.7500 12/20/12 -- (13,035) Capmark Financial Group, Inc. Sell 1,485 9.7000 12/20/12 -- (17,868) Ford Motor Credit Co. Sell 1,700 2.3200 3/20/12 -- (402,249) Intelsat Ltd. Sell 550 4.3000 12/20/08 -- 4,661 Intelsat Ltd. Sell 545 5.0000 3/20/09 -- 8,500 Nalco Co. Sell 435 3.6000 9/20/12 -- 2,009 Nalco Co. Sell 455 4.1700 9/20/13 -- (1,519) Nortel Networks Corp. Sell 1,735 1.8900 9/20/08 -- 704 Owens-Illinois, Inc. Sell 500 2.5000 6/20/13 -- (2,043) Reliant Energy, Inc. Sell 1,070 2.6000 9/20/11 -- (11,259) Reliant Energy, Inc. Sell 1,035 3.9000 9/20/11 -- 27,649 Reliant Energy, Inc. Sell 465 2.4500 9/20/11 -- (6,890) Tribune Co. Sell 525 5.0000 3/20/10 168,000 (136,721) Tribune Co. Sell 540 5.0000 3/20/10 176,850 (140,627) Tribune Co. Sell 540 5.0000 3/20/10 178,200 (140,627) Tribune Co. Sell 555 5.0000 3/20/10 194,250 (144,533) Tribune Co. Sell 1,300 7.6000 9/20/08 -- (22,243) Tribune Co. Sell 1,160 7.5000 9/20/08 -- (20,134) - ------------------------------------------------------------------------------------------------------------------------------------ Credit Suisse International: Aramark Corp. Sell 705 6.0000 3/20/13 -- 54,067 ArvinMeritor, Inc. Sell 870 1.6000 9/20/08 -- (9,885) ArvinMeritor, Inc. Sell 900 1.4000 9/20/08 -- (10,677) Capmark Financial Group, Inc. Sell 550 6.2500 12/20/12 -- (62,649) Capmark Financial Group, Inc. Sell 1,060 3.5000 6/20/12 -- (204,946) Capmark Financial Group, Inc. Sell 1,120 5.2000 12/20/12 -- (162,301) CDX.NA.IG.10 Index Buy 4,020 1.5500 6/20/13 26,217 (22,221) CenturyTel, Inc. Buy 1,125 0.3775 9/20/12 -- 54,501 Charter Communications Holdings LLC Buy 635 5.0000 9/20/10 (40,481) 124,409 Charter Communications Holdings LLC Sell 635 5.0000 9/20/17 127,000 (318,564) Charter Communications Holdings LLC Buy 175 7.0000 9/20/10 -- 28,606 Charter Communications Holdings LLC Sell 175 5.0000 9/20/17 35,000 (87,793) El Paso Corp. Sell 505 2.8000 3/20/18 -- 10,517 Ford Motor Credit Co. Sell 875 2.5500 3/20/12 -- (201,955)
F10 | OPPENHEIMER HIGH INCOME FUND/ VA
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Credit Suisse International: Continued Ford Motor Credit Co. Sell $ 4,100 2.3850% 3/20/12 $ -- $ (963,398) GMAC LLC Sell 1,810 1.3900 3/20/17 -- (685,811) GMAC LLC Sell 1,915 5.0000 3/20/09 277,675 (20,406) Harrah's Operating Co., Inc. Sell 1,160 5.0000 3/20/10 73,950 (93,780) Intelsat Ltd. Sell 555 4.4000 3/20/09 -- 6,202 Intelsat Ltd. Sell 55 5.7500 3/20/09 -- 1,162 iStar Financial, Inc. Sell 135 4.0000 12/20/12 -- (12,941) iStar Financial, Inc. Sell 185 12.0000 3/20/09 -- 6,810 iStar Financial, Inc. Sell 845 4.1500 12/20/12 -- (76,849) Massey Energy Co. Sell 460 5.0000 3/20/13 -- 48,167 Massey Energy Co. Sell 210 5.0000 3/20/13 -- 21,989 Nalco Co. Sell 425 3.6000 9/20/12 -- 2,918 Nalco Co. Sell 860 3.4000 9/20/12 -- (2,090) Owens-Illinois, Inc. Sell 290 2.5000 6/20/13 -- (1,185) Rite Aid Corp. Sell 395 7.5000 3/20/09 -- 4,991 Sprint Nextel Corp. Sell 825 6.3000 3/20/09 -- 16,275 Tenet Healthcare Corp. Sell 1,940 4.0500 12/20/08 -- 11,743 The Goodyear Tire & Rubber Co. Sell 580 1.5500 9/20/08 -- 60 Toys "R" Us, Inc. Sell 500 2.8000 9/20/08 -- (6,304) Tribune Co. Sell 545 6.3500 12/20/08 -- (12,928) TXU Corp. Sell 925 1.5300 6/20/11 -- (72,990) TXU Corp. Sell 410 1.6100 6/20/11 -- (31,509) TXU Corp. Sell 125 5.9100 12/20/12 -- (832) TXU Corp. Sell 115 6.0500 12/20/12 -- (223) TXU Corp. Sell 125 6.0000 12/20/12 -- (453) Univision Communications, Inc. Sell 1,265 14.6000 3/20/09 -- 69,674 Vornado Realty LP Sell 190 3.6000 3/20/09 -- 4,494 Wachovia Corp. Sell 410 1.0000 3/20/09 -- 27 - ------------------------------------------------------------------------------------------------------------------------------------ Deutsche Bank AG: ABX.HE.AA.06-2 Index Sell 1,080 0.1700 5/25/46 129,590 (860,072) Ambac Assurance Corp. Sell 545 4.5500 9/20/08 -- (42,581) Ambac Assurance Corp. Sell 430 4.5500 9/20/08 -- (33,596) Cemex Sell 190 2.0000 3/20/09 -- 41 CenturyTel, Inc. Buy 2,060 0.5300 9/20/12 -- 88,038 CenturyTel, Inc. Buy 1,685 0.4250 9/20/12 -- 78,634 Countrywide Home Loans, Inc. Sell 2,210 9.0000 12/20/08 -- 67,730 Countrywide Home Loans, Inc. Sell 370 3.2500 9/20/08 -- (2,275) Countrywide Home Loans, Inc. Sell 1,010 8.5000 12/20/08 -- 28,445 Countrywide Home Loans, Inc. Sell 4,845 2.5500 9/20/08 -- (38,300) Countrywide Home Loans, Inc. Sell 2,215 9.7500 12/20/08 -- 76,136 CVRD Inco Ltd. Buy 840 0.6300 3/20/17 -- 9,713 Ford Motor Co. Sell 550 8.2000 3/20/18 -- (119,197) Ford Motor Co. Sell 2,335 6.0000 12/20/16 -- (661,125) Ford Motor Co. Sell 2,750 5.8000 12/20/16 -- (795,949) Ford Motor Co. Sell 3,440 5.8500 12/20/16 -- (990,242) Ford Motor Credit Co. Sell 2,805 2.3900 3/20/12 -- (658,749) Ford Motor Credit Co. Sell 1,360 2.3400 3/20/12 -- (321,112) General Motors Corp. Sell 1,865 4.7500 12/20/16 -- (683,795) General Motors Corp. Sell 2,200 4.6800 12/20/16 -- (810,902) GMAC LLC Sell 1,820 1.3700 3/20/17 -- (691,436) Intelsat Ltd. Sell 220 4.4000 3/20/09 -- 2,459 Intelsat Ltd. Sell 550 4.7500 3/20/09 -- 7,565 Intelsat Ltd. Sell 325 5.0000 3/20/09 -- 5,069 iStar Financial, Inc. Sell 2,305 3.0000 12/20/08 -- (76,653) iStar Financial, Inc. Sell 2,355 5.8500 12/20/08 -- (45,873) iStar Financial, Inc. Sell 805 4.3200 12/20/12 -- (68,728) iStar Financial, Inc. Sell 1,020 4.5000 12/20/12 -- (81,070)
F11 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Deutsche Bank AG: Continued iStar Financial, Inc. Sell $ 460 12.0000% 3/20/09 $ -- $ 16,932 iStar Financial, Inc. Sell 1,035 4.0000 12/20/12 -- (99,213) iStar Financial, Inc. Sell 3,955 2.9250 12/20/08 -- (132,959) Jones Apparel Group, Inc. Sell 210 2.7200 6/20/13 -- (4,129) Jones Apparel Group, Inc. Buy 210 2.6350 6/20/18 -- 6,345 Kohl's Corp. Sell 205 1.1800 6/20/13 -- (199) Kohl's Corp. Buy 205 1.3000 6/20/18 -- 379 Lehman Brothers Holdings, Inc. Sell 735 1.4100 9/20/08 -- (8,701) Liz Claiborne, Inc. Sell 765 3.2500 6/20/09 -- 474 MBIA, Inc. Sell 1,090 4.9000 12/20/12 -- (425,419) MBIA, Inc. Sell 730 1.5200 9/20/08 -- (58,528) MGM Mirage Sell 890 1.1500 12/20/09 -- (28,612) Owens-Illinois, Inc. Sell 140 2.5000 6/20/13 -- (572) SLM Corp. Sell 580 2.0100 9/20/09 -- (31,997) TXU Corp. Sell 1,105 2.5500 9/20/08 -- (4,422) Vale Overseas Ltd. Sell 840 1.0500 3/20/17 -- (40,544) Vornado Realty LP Sell 385 3.8750 6/20/09 -- 9,909 Wachovia Corp. Sell 905 1.0000 3/20/09 -- 60 Washington Mutual, Inc. Sell 435 4.5000 12/20/08 -- (6,047) Washington Mutual, Inc. Sell 665 4.5000 12/20/08 -- (9,244) XL Capital Ltd. Sell 485 3.5500 9/20/09 -- (1,547) - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Capital Markets LP: ABX.HE.AA.06-2 Index Sell 1,810 0.1700 5/25/46 714,907 (1,438,907) ABX.HE.AA.06-2 Index Sell 380 0.1700 5/25/46 31,309 (302,091) CMBX.NA.AJ.3 Index Sell 2,300 1.4700 12/13/49 282,773 (346,412) CMBX.NA.AJ.4 Index Sell 2,300 0.9600 2/17/51 396,689 (434,667) General Motors Corp. Sell 1,865 4.9500 12/20/16 -- (673,425) Nalco Co. Sell 455 4.2500 9/20/13 -- (61) - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: Amkor Technology, Inc. Sell 295 2.6500 9/20/08 -- 292 Arvinmeritor, Inc. Sell 890 1.6000 9/20/08 -- (10,112) Arvinmeritor, Inc. Sell 585 2.2500 9/20/08 -- (5,693) Beazer Homes USA, Inc. Sell 890 4.8000 9/20/08 -- (11,807) Beazer Homes USA, Inc. Sell 810 2.6500 9/20/08 -- (15,079) Dole Food Co., Inc. Sell 525 5.0000 6/20/13 69,563 (88,707) Dole Food Co., Inc. Buy 525 5.0000 6/20/09 (17,063) 13,531 Dole Food Co., Inc. Buy 740 5.0000 6/20/09 (27,750) 19,072 Dole Food Co., Inc. Sell 740 5.0000 6/20/13 98,050 (125,034) Dole Food Co., Inc. Buy 1,050 5.0000 6/20/09 (34,125) 27,062 Dole Food Co., Inc. Sell 1,050 5.0000 6/20/13 139,125 (177,413) Dole Food Co., Inc. Buy 525 5.0000 6/20/09 (17,063) 13,531 Dole Food Co., Inc. Sell 525 5.0000 6/20/13 69,563 (88,707) First Data Corp. Sell 175 3.0000 9/20/08 -- (126) First Data Corp. Sell 585 1.3500 9/20/08 -- (2,854) Ford Motor Co. Sell 500 6.4000 12/20/17 -- (128,596) General Mills, Inc. Sell 495 0.3800 12/20/12 -- (351) General Motors Corp. Sell 500 5.9500 12/20/17 -- (178,667) GMAC LLC Sell 1,095 1.3900 3/20/17 -- (414,897) GMAC LLC Sell 910 1.3900 3/20/17 -- (344,800) GMAC LLC Sell 1,030 1.3700 3/20/17 -- (391,307) GMAC LLC Sell 2,290 1.3900 3/20/17 -- (867,683) iStar Financial, Inc. Sell 2,310 3.9500 12/20/12 -- (225,216) Lehman Brothers Holdings, Inc. Sell 730 0.8000 9/20/10 -- (32,606) Lennar Corp. Sell 870 2.9000 12/20/08 -- (15,744) Nalco Co. Sell 465 3.7000 9/20/12 -- 3,787
F12 | OPPENHEIMER HIGH INCOME FUND/ VA
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: Continued R.H. Donnelley Corp. Sell $ 430 9.0000% 3/20/09 $ -- $ 10,085 Rite Aid Corp. Sell 715 8.0600 3/20/09 -- 11,922 Sara Lee Corp. Buy 480 0.4190 9/20/12 -- 984 Six Flags, Inc. Sell 350 10.8500 12/20/08 -- (21,566) Smurfit-Stone Container Enterprises, Inc. Sell 580 1.4500 9/20/08 -- 108 Sprint Nextel Corp. Sell 295 6.3000 3/20/09 -- 5,819 Station Casinos, Inc. Sell 315 5.0000 6/20/13 55,519 (62,292) Univision Communications, Inc. Sell 980 5.0000 6/20/09 98,000 (7,487) Univision Communications, Inc. Sell 270 5.0000 6/20/09 29,700 (2,063) Univision Communications, Inc. Sell 465 5.0000 6/20/09 27,900 (3,552) - ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan Chase Bank NA, NY Branch: Citigroup, Inc. Sell 880 1.3000 9/20/08 -- (26,998) CMBX.NA.AJ.3 Index Sell 1,000 1.4700 12/13/49 119,886 (173,503) CMBX.NA.AJ.4 Index Sell 1,000 0.9600 2/17/51 169,360 (213,223) Countrywide Home Loans, Inc. Sell 1,820 1.8000 9/20/08 -- (17,814) Dean Foods Co. Sell 460 1.0500 6/20/11 -- (30,691) Dean Foods Co. Sell 1,200 1.0800 6/20/11 -- (79,115) Dean Foods Co. Sell 930 1.0300 6/20/11 -- (62,539) Dean Foods Co. Sell 930 1.0600 6/20/11 -- (61,804) Dole Food Co., Inc. Sell 225 2.3800 9/20/08 -- (2,357) Ford Motor Co. Sell 2,335 6.0000 12/20/16 -- (661,125) General Motors Corp. Sell 2,760 4.7500 12/20/16 -- (1,011,943) Lehman Brothers Holdings, Inc. Sell 5,770 1.5500 9/20/08 -- (66,280) Merrill Lynch & Co., Inc. Sell 5,770 0.8000 9/20/08 -- 2,591 Rite Aid Corp. Sell 555 1.4000 9/20/08 -- (11,257) The Bear Stearns Cos., Inc. Sell 1,470 2.7000 9/20/08 -- 31 Toys "R" Us, Inc. Sell 450 1.9200 9/20/08 -- (6,663) Tribune Co. Sell 890 8.5000 9/20/08 -- (13,250) Univision Communications, Inc. Sell 750 5.0000 6/20/09 97,500 (5,730) - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: ABX.HE.AA.06-2 Index Sell 1,270 0.1700 5/25/46 822,223 (1,012,639) ABX.HE.AA.06-2 Index Sell 490 0.1700 5/25/46 120,022 (390,703) Allied Waste North America, Inc. Sell 535 2.2100 9/20/09 -- (1,461) Ambac Assurance Corp. Sell 225 4.6500 9/20/08 -- (17,525) Amkor Technology, Inc. Sell 430 2.5000 9/20/08 -- 262 Aramark Corp. Sell 500 6.0000 3/20/13 -- 38,346 ArvinMeritor, Inc. Sell 445 3.0000 9/20/08 -- (3,494) ArvinMeritor, Inc. Sell 810 2.2000 9/20/08 -- (1,851) ArvinMeritor, Inc. Sell 890 1.1500 9/20/08 -- (11,116) Beazer Homes USA, Inc. Sell 1,280 5.4000 9/20/08 -- (15,069) Beazer Homes USA, Inc. Sell 585 5.0000 9/20/08 58,500 (7,469) Cablevision Systems Corp. Sell 930 3.1300 12/20/10 -- (14,218) Cablevision Systems Corp. Sell 230 3.4000 12/20/10 -- (4,945) CDX.NA.IG.10 Index Buy 7,405 1.5500 6/20/13 230,013 (42,553) Cemex, Sociedad Anonima Bursatil De Capital Variable Sell 415 1.9500 3/20/09 -- (63) Centex Corp. Sell 590 1.7500 9/20/09 -- (13,699) Centex Corp. Sell 250 3.7500 6/20/09 -- 190 CenturyTel, Inc. Buy 2,900 1.2300 9/20/13 -- 61,439 Charter Communications Holdings LLC Buy 330 7.4000 9/20/10 -- 51,800 Charter Communications Holdings LLC Sell 330 5.0000 9/20/12 49,500 (150,779) Charter Communications Holdings LLC Sell 435 5.0000 9/20/12 69,600 (198,754)
F13 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: Continued Charter Communications Holdings LLC Buy $ 435 7.6000% 9/20/10 $ -- $ 66,870 Charter Communications Holdings LLC Buy 430 7.2500 9/20/10 -- 68,544 Charter Communications Holdings LLC Sell 430 5.0000 9/20/12 64,500 (196,469) CMBX.NA.AJ.3 Index Sell 2,500 1.4700 12/13/49 352,732 (435,717) Companhia Vale Do Rio Doce Sell 685 1.5900 3/20/17 -- 5,672 CSC Holdings, Inc. Sell 510 5.6000 3/20/13 -- 27,408 Cvrd Inco Ltd. Buy 685 0.7100 3/20/17 -- (1,128) Dillard's, Inc. Sell 945 2.2500 12/20/08 -- 7,073 Dillard's, Inc. Sell 2,735 2.2500 12/20/08 -- 20,471 Dole Food Co., Inc. Sell 785 5.0000 3/20/09 125,600 (14,836) Dole Food Co., Inc. Sell 610 5.2500 9/20/08 -- (2,004) Dole Food Co., Inc. Sell 570 3.4500 9/20/08 -- (4,443) Dole Food Co., Inc. Sell 845 3.2000 9/20/08 -- (7,116) Dole Food Co., Inc. Buy 585 5.0000 6/20/09 (29,250) 15,077 Dole Food Co., Inc. Sell 585 5.0000 6/20/13 84,825 (98,845) D.R. Horton, Inc. Sell 1,140 4.2000 12/20/08 -- 1,605 First Data Corp. Sell 477 3.0000 9/20/08 -- (342) First Data Corp. Sell 870 3.5000 9/20/08 -- 472 First Data Corp. Sell 400 3.0000 9/20/08 -- (287) First Data Corp. Sell 870 2.7500 9/20/08 -- (1,174) Ford Motor Credit Co. LLC Sell 1,225 9.0500 3/20/10 -- (42,462) General Mills, Inc. Sell 600 0.4000 12/20/12 -- 68 General Motors Corp. Sell 195 7.7000 3/20/18 -- (40,024) Genworth Financial, Inc. Sell 590 3.2500 3/20/09 -- 765 Georgia-Pacific LLC Sell 600 0.8000 12/20/08 -- (8,280) GMAC LLC Sell 975 1.4000 3/20/17 -- (368,936) GMAC LLC Sell 910 1.4000 3/20/17 -- (344,340) Harrah's Operating Co., Inc. Sell 1,100 2.3000 9/20/08 -- (10,803) K. Hovnanian Enterprises, Inc. Sell 1,385 4.2200 9/20/08 -- (10,282) K. Hovnanian Enterprises, Inc. Sell 585 7.5000 9/20/08 -- 459 Lennar Corp. Sell 3,535 2.9000 12/20/08 -- (63,969) Levi Strauss & Co. Sell 570 1.6000 9/20/08 -- 898 Limited Brands, Inc. Sell 205 2.9000 6/20/13 -- (78) Limited Brands, Inc. Buy 205 2.9300 6/20/18 -- (10,054) Liz Claiborne, Inc. Sell 305 3.1500 6/20/13 -- 523 Liz Claiborne, Inc. Buy 305 2.9200 6/20/18 -- 4,187 Liz Claiborne, Inc. Sell 110 2.7500 6/20/13 -- (1,595) Liz Claiborne, Inc. Buy 110 2.6000 6/20/18 -- 3,793 Macy's, Inc. Buy 415 2.5400 6/20/18 -- (5,389) Macy's, Inc. Sell 205 2.5700 6/20/13 -- 5,065 Macy's, Inc. Buy 205 2.5000 6/20/18 -- (2,100) Macy's, Inc. Sell 415 2.6100 6/20/13 -- 10,956 MBIA, Inc. Sell 4,855 1.9500 9/20/08 -- (384,205) Morgan Stanley Sell 1,460 0.6400 9/20/08 -- (199) Nalco Co. Sell 260 3.4000 9/20/12 -- (632) Nortel Networks Corp. Sell 865 1.8500 9/20/08 -- 263 Owens-Illinois, Inc. Sell 535 3.4100 3/20/13 -- 27,218 Owens-Illinois, Inc. Sell 1,180 3.4600 3/20/13 -- 62,411 Owens-Illinois, Inc. Sell 555 2.6400 6/20/13 -- 904 Pulte Homes, Inc. Sell 875 2.8500 9/20/09 -- (8,833) R.H. Donnelley Corp. Sell 60 5.0000 3/20/09 6,000 (2,311) Reliant Energy, Inc. Sell 845 2.1500 9/20/11 -- (19,782) Reliant Energy, Inc. Sell 440 2.5000 9/20/11 -- (5,890) Rite Aid Corp. Sell 570 3.2500 9/20/08 -- (8,934)
F14 | OPPENHEIMER HIGH INCOME FUND/ VA
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: Continued Rite Aid Corp. Sell $ 455 1.3500% 9/20/08 $ -- $ (9,285) Rite Aid Corp. Sell 1,080 1.3500 9/20/08 -- (22,038) Rite Aid Corp. Sell 75 1.4500 9/20/08 -- (1,512) Saks, Inc. Sell 570 1.7000 9/20/08 -- 148 Six Flags, Inc. Sell 355 5.0000 9/20/08 -- (5,567) Six Flags, Inc. Sell 1,330 5.2200 9/20/08 -- (20,130) Six Flags, Inc. Sell 650 7.0000 9/20/08 -- (6,965) SLM Corp. Sell 110 5.4000 6/20/09 -- 135 Smurfit-Stone Container Enterprises, Inc. Sell 165 6.7000 6/20/13 -- (1,681) Smurfit-Stone Container Enterprises, Inc. Sell 265 6.6000 6/20/13 -- (3,628) Smurfit-Stone Container Enterprises, Inc. Sell 615 6.5800 6/20/13 -- (8,852) Sprint Nextel Corp. Sell 555 6.3000 3/20/09 -- 10,948 Station Casinos, Inc. Sell 445 5.0000 6/20/13 78,988 (88,556) Tenet Healthcare Corp. Sell 585 4.9000 3/20/09 -- 8,455 The Bear Stearns Cos., Inc. Sell 5,780 1.6000 9/20/08 -- (16,652) The Hartford Financial Services Group, Inc. Sell 195 2.3500 3/20/09 -- 1,939 The Hartford Financial Services Group, Inc. Sell 200 2.3500 3/20/09 -- 1,988 Toys "R" Us, Inc. Sell 905 1.8500 9/20/08 -- (13,559) Toys "R" Us, Inc. Sell 585 3.2500 9/20/08 -- (6,718) Toys "R" Us, Inc. Sell 40 8.6100 3/20/09 -- 1,107 Toys "R" Us, Inc. Sell 30 8.6100 3/20/09 -- 830 Toys "R" Us, Inc. Sell 360 4.3000 9/20/08 -- (3,189) Toys "R" Us, Inc. Sell 1,200 1.9500 9/20/08 -- (17,678) Tribune Co. Sell 465 5.0000 3/20/10 146,475 (121,095) Tribune Co. Sell 270 6.4000 12/20/08 -- (6,340) Tribune Co. Sell 185 5.0000 3/20/10 61,050 (48,178) Tribune Co. Sell 505 5.0000 3/20/10 166,650 (131,512) Tribune Co. Sell 505 5.0000 3/20/10 176,750 (131,512) Tribune Co. Sell 530 5.0000 3/20/10 180,200 (138,023) Tribune Co. Sell 450 5.0000 3/20/10 135,000 (117,189) Tribune Co. Sell 380 6.0000 12/20/08 -- (9,654) Tribune Co. Sell 430 7.4500 9/20/08 -- (7,516) Tribune Co. Sell 580 7.5500 9/20/08 -- (9,995) Tribune Co. Sell 425 5.0000 3/20/10 110,500 (110,679) Tribune Co. Sell 230 7.5500 9/20/08 -- (3,964) Univision Communications, Inc. Sell 865 5.0000 3/20/09 73,525 (30,209) Univision Communications, Inc. Sell 450 3.0000 12/20/08 -- (16,295) Univision Communications, Inc. Sell 410 3.0000 12/20/08 -- (14,846) Washington Mutual, Inc. Sell 2,875 5.1500 12/20/08 -- (30,841) Washington Mutual, Inc. Sell 1,555 4.4000 12/20/08 -- (22,374) - ------------------------------------------------------------------------------------------------------------------------------------ Merrill Lynch International: El Paso Corp. Sell 530 2.9000 3/20/18 -- 14,578 El Paso Corp. Sell 1,345 2.8900 3/20/18 -- 36,097 Ford Motor Co. Sell 3,825 5.3000 12/20/12 -- (935,515) General Motors Corp. Sell 2,550 4.0500 12/20/12 -- (781,583) Reliant Energy, Inc. Sell 420 2.0500 9/20/11 -- (11,036) Smurfit-Stone Container Enterprises, Inc. Sell 495 6.7000 6/20/13 -- (5,043) Smurfit-Stone Container Enterprises, Inc. Sell 710 6.8000 6/20/13 -- (4,746) TXU Corp. Sell 930 1.5800 6/20/11 -- (72,189) TXU Corp. Sell 925 1.5900 6/20/11 -- (71,564)
F15 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ SWAP COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Merrill Lynch International: Continued TXU Corp. Sell $ 1,150 1.6200% 6/20/11 $ -- $ (88,084) TXU Corp. Sell 1,310 2.0600 6/20/11 -- (85,522) TXU Corp. Sell 925 1.5300 6/20/11 -- (72,990) - ---------------------------------------------------------------------------- ------------------------------------------------------- Morgan Stanley Capital Services, Inc.: ABX.HE.AA.06-2 Index Sell 380 0.1700 5/25/46 30,359 (302,994) ABX.HE.AA.06-2 Index Sell 730 0.1700 5/25/46 72,997 (582,068) Aramark Corp. Sell 835 5.9200 3/20/13 -- 61,517 Capmark Financial Group, Inc. Sell 530 7.4000 12/20/12 -- (42,372) Capmark Financial Group, Inc. Sell 550 7.1500 12/20/12 -- (48,032) Ford Motor Co. Sell 150 5.9000 12/20/16 -- (42,943) Ford Motor Co. Sell 2,335 6.1500 12/20/16 -- (650,092) General Motors Corp. Sell 120 4.6200 12/20/16 -- (44,431) General Motors Corp. Sell 1,865 4.9000 12/20/16 -- (676,018) Intelsat Ltd. Sell 550 2.7500 12/20/08 -- 421 J.C. Penney Co., Inc. Sell 385 1.3000 12/20/17 -- (11,763) J.C. Penney Co., Inc. Sell 370 1.0700 12/20/17 -- (17,199) Jones Apparel Group, Inc. Sell 425 3.2000 6/20/13 -- (119) Jones Apparel Group, Inc. Buy 425 2.9700 6/20/18 -- 3,587 Kohl's Corp. Buy 555 0.6600 12/20/17 -- 14,504 Kohl's Corp. Buy 575 0.8700 12/20/17 -- 6,224 Lennar Corp. Sell 1,775 2.9000 12/20/08 -- (32,120) Liz Claiborne, Inc. Sell 415 3.1000 6/20/13 -- (130) Liz Claiborne, Inc. Buy 415 2.9000 6/20/18 -- 6,235 Massey Energy Co. Sell 690 5.1000 9/20/12 -- 61,832 Residential Capital LLC Sell 875 6.2000 9/20/08 -- (15,092) Residential Capital LLC Sell 2,610 6.1700 9/20/08 -- (45,490) Residential Capital LLC Sell 845 6.2500 9/20/08 -- (14,320) Sara Lee Corp. Buy 615 0.4180 9/20/12 -- 1,285 The Hartford Financial Services Group, Inc. Sell 195 2.4000 3/20/09 -- 2,011 - ---------------------------------------------------------------------------- ------------------------------------------------------- UBS AG: iStar Financial, Inc. Sell 550 - 4.5600 12/20/12 -- (42,633) Lehman Brothers Holdings, Inc. Sell 2,310 1.5500 9/20/08 -- (26,535) Massey Energy Co. Sell 375 5.0500 9/20/12 -- 32,925 Massey Energy Co. Sell 430 5.1000 9/20/12 -- 38,533 Univision Communications, Inc. Sell 450 5.0000 6/20/09 40,500 (3,438) ---------------------------- $7,013,053 $ (29,887,778) ============================
F16 | OPPENHEIMER HIGH INCOME FUND/ VA - -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Three-Month International $ 25,200,000 2.8440% USD BBA LIBOR 2/28/10 $ 94,676 - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Three-Month Capital Markets LP 22,500,000 4.8275 USD BBA LIBOR 2/1/28 262,418 ----------- $ 357,094 ===========
Index abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Citibank NA: If positive, the Total Return If negative, the Total Return of the Lehman Brothers of the Lehman Brothers $ 19,800,000 U.S. CMBS AAA Index U.S. CMBS AAA Index 2/1/09 $ (409,753) If negative, the Total Return If positive, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 1,500,000 CMBS AAA 8.5+ Index minus 15 basis points 8/1/08 (59,170) If positive, the Total Return If negative, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA Index minus CMBS AAA Index plus 11,500,000 15 basis points 15 basis points 2/1/09 (236,598) - ------------------------------------------------------------------------------------------------------------------------------------ If negative, the Total Return If positive, the Total Return of the Lehman Brothers of the Lehman Brothers U.S. CMBS AAA 8.5+ Index Deutsche Bank AG 3,600,000 U.S. CMBS AAA 8.5+ Index minus 15 basis points 8/1/08 (141,838) - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Group, Inc. (The): If negative, the Total Return If positive, the Total Return of the Lehman Brothers of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 10,900,000 U.S. CMBS AAA 8.5+ Index plus 50 basis points 8/1/08 (419,317) If positive, the Total Return If negative, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. 10,800,000 CMBS AAA 8.5+ Index CMBS AAA 8.5+ Index 3/1/09 (423,258) If negative, the Total Return If positive, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 4,200,000 CMBS AAA 8.5+ Index plus 50 basis points 3/1/09 (149,009) If negative, the Total Return If positive, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 3,380,000 CMBS AAA 8.5+ Index plus 250 basis points 3/1/09 (69,729) If negative, the Total Return If positive, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 4,060,000 CMBS AAA 8.5+ Index plus 200 basis points 3/1/09 (98,828) If negative, the Total Return If positive, the Total Return of the Lehman Brothers U.S. of the Lehman Brothers U.S. CMBS AAA 8.5+ Index 16,510,000 CMBS AAA 8.5+ Index minus 50 basis points 12/1/08 (686,852)
F17 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 145 JPMorgan Chase $ 2,600,000 AAA 8.5+ Index basis points 11/1/08 $ (115,337) - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Holdings, Inc.: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 35 20,300,000 AAA 8.5+ Index basis points 8/1/08 (796,316) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 2,200,000 AAA Index Index plus 25 basis points 2/1/09 (45,401) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 15 4,300,000 AAA 8.5+ Index basis points 8/1/08 (170,231) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 400,000 AAA 8.5+ Index 8.5+ Index 3/1/09 (15,792) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 200 4,060,000 AAA 8.5+ Index basis points 3/1/09 (154,425) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 900,000 AAA 8.5+ Index 8.5+ Index 5/1/09 (35,532) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 20 1,800,000 AAA 8.5+ Index basis points 5/1/09 (71,324) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 35 23,550,000 AAA 8.5+ Index basis points 12/1/08 (935,710) - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 30 6,100,000 AAA 8.5+ Index basis points 8/1/08 (239,852) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 225 9,350,000 AAA 8.5+ Index basis points 8/1/08 (327,964)
F18 | OPPENHEIMER HIGH INCOME FUND/ VA
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley: Continued If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS $ 2,200,000 AAA Index AAA Index 2/1/09 $ (39,325) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 3,800,000 AAA Index AAA Index 3/1/09 (66,374) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 250 7,530,000 AAA 8.5+ Index basis points 3/1/09 (122,209) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 350 1,280,000 AAA 8.5+ Index basis points 3/1/09 (11,271) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 50 19,480,000 AAA 8.5+ Index basis points 12/1/08 (759,567) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 65 4,980,000 AAA 8.5+ Index basis points 12/1/08 (197,892) -------------- $ (6,798,874) ==============
Abbreviation is as follows: CMBS Commercial Mortgage Backed Securities SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F19 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS - ---------------------------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $468,963,041) $ 431,703,672 Affiliated companies (cost $842,195) 842,195 ------------------ 432,545,867 - ---------------------------------------------------------------------------------------------------------------------------------- Cash 830,598 - ---------------------------------------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $2,678,874) 644,080 - ---------------------------------------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 8,203,984 Investments sold 330,089 Futures margins 5,871 Other 15,379 ------------------ Total assets 442,575,868 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES - ---------------------------------------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $4,334,179) 36,973,638 - ---------------------------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 1,880,909 Investments purchased (including $735,000 purchased on a when-issued or delayed delivery basis) 1,499,135 Distribution and service plan fees 94,650 Trustees' compensation 13,274 Transfer and shareholder servicing agent fees 2,638 Other 10,576 ------------------ Total liabilities 40,474,820 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 402,101,048 ================== - ---------------------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ---------------------------------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 57,323 - ---------------------------------------------------------------------------------------------------------------------------------- Additional paid-in capital 548,466,563 - ---------------------------------------------------------------------------------------------------------------------------------- Accumulated net investment income 29,235,171 - ---------------------------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (109,232,657) - ---------------------------------------------------------------------------------------------------------------------------------- Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies (66,425,352) ------------------ NET ASSETS $ 402,101,048 ==================
F20 | OPPENHEIMER HIGH INCOME FUND/ VA - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $243,281,379 and 34,626,911 shares of beneficial interest outstanding) $ 7.03 - ------------------------------------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $137,255,418 and 19,639,889 shares of beneficial interest outstanding) $ 6.99 - ------------------------------------------------------------------------------------------------------------------------------- Class 3 Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $6,491,837 and 919,980 shares of beneficial interest outstanding) $ 7.06 - ------------------------------------------------------------------------------------------------------------------------------- Class 4 Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $15,072,414 and 2,136,506 shares of beneficial interest outstanding) $ 7.05
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F21 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended June 30, 2008 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - --------------------------------------------------------------------------------------------------------------------------------- Interest $ 17,833,022 - --------------------------------------------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $3,460) 402,326 Affiliated companies 223,548 - --------------------------------------------------------------------------------------------------------------------------------- Fee income 20,238 ---------------------- Total investment income 18,479,134 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES - --------------------------------------------------------------------------------------------------------------------------------- Management fees 1,559,295 - --------------------------------------------------------------------------------------------------------------------------------- Distribution and service plan fees: Service shares 175,368 Class 4 shares 12,910 - --------------------------------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,942 Service shares 4,966 Class 3 shares 125 Class 4 shares 1,739 - --------------------------------------------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 10,308 Service shares 5,597 Class 3 shares 262 Class 4 shares 491 - --------------------------------------------------------------------------------------------------------------------------------- Trustees' compensation 6,694 - --------------------------------------------------------------------------------------------------------------------------------- Custodian fees and expenses 1,433 - --------------------------------------------------------------------------------------------------------------------------------- Administration service fees 750 - --------------------------------------------------------------------------------------------------------------------------------- Other 29,224 ---------------------- Total expenses 1,814,104 Less reduction to custodian expenses (1,161) Less waivers and reimbursements of expenses (7,023) ---------------------- Net expenses 1,805,920 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 16,673,214 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on: Investments from unaffiliated companies (9,274,876) Closing and expiration of futures contracts (2,757,833) Foreign currency transactions 123,428 Short positions (76,620) Swap contracts 6,938,832 ---------------------- Net realized loss (5,047,069) - --------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (18,103,534) Translation of assets and liabilities denominated in foreign currencies 27,623 Futures contracts (196,102) Short positions 23,908 Swap contracts (16,335,853) ---------------------- Net change in unrealized depreciation (34,583,958) - --------------------------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (22,957,813) ======================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F22 | OPPENHEIMER HIGH INCOME FUND/ VA STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS - --------------------------------------------------------------------------------------------------------------------------------- Net investment income $ 16,673,214 $ 35,258,258 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) (5,047,069) 2,744,711 - --------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized depreciation (34,583,958) (38,060,297) --------------------------------- Net decrease in net assets resulting from operations (22,957,813) (57,328) - --------------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - --------------------------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (16,471,157) (24,967,707) Service shares (8,570,925) (11,831,305) Class 3 shares (292,606) -- Class 4 shares (611,268) -- --------------------------------- (25,945,956) (36,799,012) - --------------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (20,680,408) (42,430,203) Service shares (3,457,573) (3,835,518) Class 3 shares 1,981,666 5,091,701 Class 4 shares 6,612,279 9,835,657 --------------------------------- (15,544,036) (31,338,363) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS - --------------------------------------------------------------------------------------------------------------------------------- Total decrease (64,447,805) (68,194,703) - --------------------------------------------------------------------------------------------------------------------------------- Beginning of period 466,548,853 534,743,556 --------------------------------- End of period (including accumulated net investment income of $ 29,235,171 and $38,507,913, respectively) $ 402,101,048 $ 466,548,853 =================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F23 | OPPENHEIMER HIGH INCOME FUND/ VA FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 7.95 $ 8.55 $ 8.44 $ 8.80 $ 8.61 $ 7.51 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .29 1 .57 1 .58 1 .57 1 .58 1 .60 Net realized and unrealized gain (loss) (.74) (.56) .17 (.37) .15 1.09 ------------------------------------------------------------------------------------ Total from investment operations (.45) .01 .75 .20 .73 1.69 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.47) (.61) (.64) (.56) (.54) (.59) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 7.03 $ 7.95 $ 8.55 $ 8.44 $ 8.80 $ 8.61 ==================================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 (5.10)% (0.10)% 9.42% 2.31% 8.97% 23.96% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 243,281 $ 294,819 $ 361,445 $ 384,726 $ 479,405 $ 480,112 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 265,614 $ 335,702 $ 365,154 $ 444,477 $ 460,877 $ 396,858 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 7.92% 6.96% 7.05% 6.79% 6.91% 8.31% Total expenses 0.76% 4 0.75% 4 0.74% 4 0.75% 0.75% 0.76% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.76% 0.74% 0.74% 0.75% 0.75% 0.76% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 36% 5 67% 5 57% 64% 51% 48%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.76% Year Ended December 31, 2007 0.76 Year Ended December 31, 2006 0.74
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS
PURCHASE TRANSACTIONS SALE TRANSACTIONS --------------------------------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 29,212,893 $ 30,139,683 Year Ended December 31, 2007 $ 30,798,147 $ 24,096,458
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F24 | OPPENHEIMER HIGH INCOME FUND/ VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.89 $ 8.50 $ 8.39 $ 8.76 $ 8.58 $ 7.49 - ------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .28 1 .55 1 .56 1 .55 1 .56 1 .61 Net realized and unrealized gain (loss) (.73) (.57) .17 (.38) .15 1.06 -------------------------------------------------------------------------------------- Total from investment operations (.45) (.02) .73 .17 .71 1.67 - ------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.45) (.59) (.62) (.54) (.53) (.58) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.99 $ 7.89 $ 8.50 $ 8.39 $ 8.76 $ 8.58 ====================================================================================== - ------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (5.20)% (0.47)% 9.23% 2.01% 8.73% 23.79% - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 137,256 $ 157,333 $ 173,299 $ 155,617 $ 134,013 $ 76,354 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 143,933 $ 169,569 $ 160,703 $ 141,287 $ 101,464 $ 41,246 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 7.68% 6.71% 6.80% 6.54% 6.63% 7.84% Total expenses 1.01% 4 1.01% 4 1.00% 4 1.00% 1.01% 1.04% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.01% 1.00% 1.00% 1.00% 1.01% 1.04% - ------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 36% 5 67% 5 57% 64% 51% 48%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 1.01% Year Ended December 31, 2007 1.02 Year Ended December 31, 2006 1.00
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS ---------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 29,212,893 $ 30,139,683 Year Ended December 31, 2007 $ 30,798,147 $ 24,096,458
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F25 | OPPENHEIMER HIGH INCOME FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED JUNE 30, 2008 DECEMBER 31, CLASS 3 SHARES (UNAUDITED) 2007 1 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 7.98 $ 8.26 - ------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income 2 .28 .37 Net realized and unrealized loss (.73) (.65) ----------------------------- Total from investment operations (.45) (.28) - ------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.47) -- - ------------------------------------------------------------------------------------------ Net asset value, end of period $ 7.06 $ 7.98 ============================= - ------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 (5.08)% (3.39)% - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 6,492 $ 4,921 - ------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 6,406 $ 3,750 - ------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income 7.83% 6.90% Total expenses 5 0.76% 0.76% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.76% 0.75% - ------------------------------------------------------------------------------------------ Portfolio turnover rate 6 36% 67%
1. For the period from May 1, 2007 (inception of offering) to December 31, 2007. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.76% Period Ended December 31, 2007 0.77
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS --------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 29,212,893 $ 30,139,683 Year Ended December 31, 2007 $ 30,798,147 $ 24,096,458
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F26 | OPPENHEIMER HIGH INCOME FUND/ VA
SIX MONTHS ENDED PERIOD ENDED JUNE 30, 2008 DECEMBER 31, CLASS 4 SHARES (UNAUDITED) 2007 1 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 7.97 $ 8.26 - ------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income 2 .28 .36 Net realized and unrealized loss (.74) (.65) ----------------------------- Total from investment operations (.46) (.29) - ------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.46) -- - ------------------------------------------------------------------------------------------ Net asset value, end of period $ 7.05 $ 7.97 ============================= - ------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 (5.25)% (3.51)% - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 15,072 $ 9,476 - ------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 12,177 $ 7,201 - ------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income 7.63% 6.61% Total expenses 5 1.00% 1.05% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.00% 1.04% - ------------------------------------------------------------------------------------------ Portfolio turnover rate 6 36% 67%
1. For the period from May 1, 2007 (inception of offering) to December 31, 2007. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 1.00% Period Ended December 31, 2007 1.06
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS -------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 29,212,893 $ 30,139,683 Year Ended December 31, 2007 $ 30,798,147 $ 24,096,458
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F27 | OPPENHEIMER HIGH INCOME FUND/ VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer High Income Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek a high level of current income by investing mainly in a diversified portfolio of high-yield, lower-grade, fixed-income securities that the Fund's investment manager, OppenheimerFunds, Inc. (the "Manager"), believes does not involve undue risk. The Fund offers Non-Service, Service, Class 3 and Class 4 shares. All classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares being designated as Service shares and Class 4 shares are subject to a distribution and service plan. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The Fund assesses a 1% fee on the proceeds of Class 3 and Class 4 shares that are redeemed (either by selling or exchanging to another Oppenheimer fund or other investment option offered through your variable life insurance or variable annuity contract) within 60 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. F28 | OPPENHEIMER HIGH INCOME FUND/VA Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of June 30, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS ------------------------------ Purchased securities $735,000
The Fund may enter into "forward roll" transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. F29 | OPPENHEIMER HIGH INCOME FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited/Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; counterparty credit risk. To assure its future payment of the purchase price, the Fund maintains internally designated assets with a market value equal to or greater than the payment obligation under the roll. - -------------------------------------------------------------------------------- SECURITIES SOLD SHORT. The Fund may short sell when-issued securities for future settlement. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss for the value of the open short position. The Fund records a realized gain or loss when the short position is closed out. - -------------------------------------------------------------------------------- CREDIT RISK. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of June 30, 2008, securities with an aggregate market value of $1,665,087, representing 0.41% of the Fund's net assets, were in default. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET MARKET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. F30 | OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund utilized $4,768,054 of capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October losses of $5,450,028, post-October foreign currency loses of $23 and unused capital loss carryforwards as follows:
EXPIRING ------------------------ 2008 $ 9,779,664 2009 22,696,701 2010 56,061,391 2011 8,529,303 2012 128,504 ------------ Total $ 97,195,563 ============
As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $107,692,683 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 470,530,276 Federal tax cost of other investments (19,952,656) ------------- Total federal tax cost $ 450,577,620 ============= Gross unrealized appreciation $ 12,290,268 Gross unrealized depreciation (79,440,660) ------------- Net unrealized depreciation $ (67,150,392) =============
F31 | OPPENHEIMER HIGH INCOME FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited/Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. F32 | OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 1 SHARES AMOUNT SHARES AMOUNT - ---------------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 3,750,011 $ 26,398,300 6,787,194 $ 55,828,051 Dividends and/or distributions reinvested 2,553,668 16,471,157 3,059,768 24,967,707 Redeemed (8,773,048) (63,549,865) (15,007,275) (123,225,961) -------------------------------------------------------------------- Net decrease (2,469,369) $ (20,680,408) (5,160,313) $ (42,430,203) ==================================================================== - ---------------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 945,558 $ 6,712,801 3,742,971 $ 30,663,500 Dividends and/or distributions reinvested 1,335,035 8,570,925 1,457,057 11,831,305 Redeemed (2,577,330) (18,741,299) (5,655,204) (46,330,323) -------------------------------------------------------------------- Net decrease (296,737) $ (3,457,573) (455,176) $ (3,835,518) ==================================================================== - ---------------------------------------------------------------------------------------------------------------------- CLASS 3 SHARES Sold 778,585 $ 5,545,652 881,563 $ 7,225,930 Dividends and/or distributions reinvested 45,225 292,606 -- -- Redeemed (520,566) (3,856,592) 2 (264,827) (2,134,229) 3 -------------------------------------------------------------------- Net increase 303,244 $ 1,981,666 616,736 $ 5,091,701 ==================================================================== - ---------------------------------------------------------------------------------------------------------------------- CLASS 4 SHARES Sold 1,220,881 $ 8,725,135 1,978,987 $ 16,140,299 Dividends and/or distributions reinvested 94,331 611,268 -- -- Redeemed (367,365) (2,724,124) 2 (790,328) (6,304,642) 3 -------------------------------------------------------------------- Net increase 947,847 $ 6,612,279 1,188,659 $ 9,835,657 ====================================================================
1. For the year ended December 31, 2007, for non-service and service shares, and for the period from May 1, 2007 (inception of offering) to December 31, 2007 for Class 3 and Class 4 shares. 2. Net of redemption fees of $1,315 and $3,396 for Class 3 and Class 4 shares, respectively. 3. Net of redemption fees of $10,660 and $30,654 for Class 3 and Class 4 shares, respectively. - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES -------------------------------------------------------------------------------- Investment securities $ 130,236,046 $ 162,741,269 To Be Announced (TBA) mortgage-related securities 29,212,893 30,139,683
F33 | OPPENHEIMER HIGH INCOME FUND/ VA NOTES TO FINANCIAL STATEMENTS Unaudited/Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ------------------------------ Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Next $200 million 0.60 Over $1 billion 0.50
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $12,570 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES AND CLASS 4 SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares and Class 4 shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares and Class 4 shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares and Class 4 shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares and Class 4 shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares and Class 4 shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $7,023 for IMMF management fees. - -------------------------------------------------------------------------------- 5. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. F34 | OPPENHEIMER HIGH INCOME FUND/VA Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. - -------------------------------------------------------------------------------- 6. SWAP CONTRACTS The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Risks of entering into swap contracts include credit, market and liquidity risk. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination. - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps on a single security, or a basket of securities. In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations. Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities). F35 | OPPENHEIMER HIGH INCOME FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited/Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. SWAP CONTRACTS Continued INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between counterparties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received. - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between counterparties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments. - -------------------------------------------------------------------------------- 7. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. - -------------------------------------------------------------------------------- 8. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F36 | OPPENHEIMER HIGH INCOME FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER HIGH INCOME FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Main Street Fund(R)/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ---------------------------------------------------------------------------------- Non-Service Shares $1,000.00 $ 904.40 $3.08 - ---------------------------------------------------------------------------------- Service Shares 1,000.00 903.20 4.27 HYPOTHETICAL (5% return before expenses) - ---------------------------------------------------------------------------------- Non-Service Shares 1,000.00 1,021.63 3.27 - ---------------------------------------------------------------------------------- Service Shares 1,000.00 1,020.39 4.53
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------------------------ Non-Service Shares 0.65% - ------------------------------------------------------ Service Shares 0.90
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER MAIN STREET FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------ - ------------------------------------------------------------------------ COMMON STOCKS--99.8% - ------------------------------------------------------------------------ CONSUMER DISCRETIONARY--9.3% - ------------------------------------------------------------------------ AUTO COMPONENTS--0.4% Autoliv, Inc. 32,400 $ 1,510,488 - ------------------------------------------------------------------------ Borg-Warner Automotive, Inc. 1 38,600 1,713,068 - ------------------------------------------------------------------------ Gentex Corp. 93,000 1,342,920 - ------------------------------------------------------------------------ Goodyear Tire & Rubber Co. (The) 2 61,500 1,096,545 - ------------------------------------------------------------------------ Lear Corp. 1,2 26,700 378,606 - ------------------------------------------------------------------------ TRW Automotive Holdings Corp. 2 65,800 1,215,326 - ------------------------------------------------------------------------ WABCO Holdings, Inc. 25,700 1,194,022 ------------- 8,450,975 - ------------------------------------------------------------------------ AUTOMOBILES--0.3% Ford Motor Co. 1,2 1,247,870 6,002,255 - ------------------------------------------------------------------------ DISTRIBUTORS--0.1% Genuine Parts Co. 17,900 710,272 - ------------------------------------------------------------------------ LKQ Corp. 1,2 84,100 1,519,687 ------------- 2,229,959 - ------------------------------------------------------------------------ DIVERSIFIED CONSUMER SERVICES--0.1% H&R Block, Inc. 54,100 1,157,740 - ------------------------------------------------------------------------ Service Corp. International 92,200 909,092 ------------- 2,066,832 - ------------------------------------------------------------------------ HOTELS, RESTAURANTS & LEISURE--0.5% Bob Evans Farms, Inc. 1 15,300 437,580 - ------------------------------------------------------------------------ Carnival Corp. 12,100 398,816 - ------------------------------------------------------------------------ CBRL Group, Inc. 1 4,700 115,197 - ------------------------------------------------------------------------ Chipotle Mexican Grill, Inc., Cl. B 1,2 7,419 559,096 - ------------------------------------------------------------------------ International Speedway Corp. 7,200 281,016 - ------------------------------------------------------------------------ Jack in the Box, Inc. 1,2 9,300 208,413 - ------------------------------------------------------------------------ McDonald's Corp. 94,100 5,290,302 - ------------------------------------------------------------------------ Papa John's International, Inc. 1,2 7,300 194,107 - ------------------------------------------------------------------------ Speedway Motorsports, Inc. 1 1,300 26,494 - ------------------------------------------------------------------------ Wyndham Worldwide Corp. 86,700 1,552,797 - ------------------------------------------------------------------------ Yum! Brands, Inc. 25,689 901,427 ------------- 9,965,245 - ------------------------------------------------------------------------ HOUSEHOLD DURABLES--0.2% American Greetings Corp., Cl. A 1 12,000 148,080 - ------------------------------------------------------------------------ Champion Enterprises, Inc. 1,2 25,900 151,515 - ------------------------------------------------------------------------ Lennar Corp., Cl. A 1 72,000 888,480 - ------------------------------------------------------------------------ NVR, Inc. 1,2 2,800 1,400,224 - ------------------------------------------------------------------------ Snap-On, Inc. 1 29,000 1,508,290 - ------------------------------------------------------------------------ Stanley Works (The) 1 17,400 780,042 ------------- 4,876,631
SHARES VALUE - ------------------------------------------------------------------------ INTERNET & CATALOG RETAIL--0.3% IAC/InterActiveCorp 1,2 80,200 $ 1,546,256 - ------------------------------------------------------------------------ Liberty Media Corp.-Interactive, Series A 1,2 145,600 2,149,056 - ------------------------------------------------------------------------ NetFlix.com, Inc. 1,2 19,800 516,186 - ------------------------------------------------------------------------ Priceline.com, Inc. 1,2 14,500 1,674,170 ------------- 5,885,668 - ------------------------------------------------------------------------ LEISURE EQUIPMENT & PRODUCTS--0.2% Brunswick Corp. 1 39,800 421,880 - ------------------------------------------------------------------------ Callaway Golf Co. 1 41,600 492,128 - ------------------------------------------------------------------------ Hasbro, Inc. 1 48,800 1,743,136 - ------------------------------------------------------------------------ Mattel, Inc. 108,200 1,852,384 ------------- 4,509,528 - ------------------------------------------------------------------------ MEDIA--3.5% Cablevision Systems Corp. New York Group, Cl. A 1,2 76,800 1,735,680 - ------------------------------------------------------------------------ CBS Corp., Cl. B 1 721,900 14,069,831 - ------------------------------------------------------------------------ Comcast Corp., Cl. A 295,200 5,599,944 - ------------------------------------------------------------------------ Cox Radio, Inc., Cl. A 1,2 9,300 109,740 - ------------------------------------------------------------------------ DirecTV Group, Inc. (The) 1,2 622,000 16,116,020 - ------------------------------------------------------------------------ DreamWorks Animation SKG, Inc., Cl. A 2 48,000 1,430,880 - ------------------------------------------------------------------------ Getty Images, Inc. 2 8,900 301,977 - ------------------------------------------------------------------------ Harte-Hanks, Inc. 1 17,700 202,665 - ------------------------------------------------------------------------ Interactive Data Corp. 300 7,539 - ------------------------------------------------------------------------ Marvel Entertainment, Inc. 1,2 12,700 408,178 - ------------------------------------------------------------------------ News Corp., Inc., Cl. A 262,000 3,940,480 - ------------------------------------------------------------------------ Regal Entertainment Group 1 11,400 174,192 - ------------------------------------------------------------------------ Time Warner Cable, Inc., Cl. A 1,2 156,400 4,141,472 - ------------------------------------------------------------------------ Time Warner, Inc. 1,051,400 15,560,720 - ------------------------------------------------------------------------ Viacom, Inc., Cl. B 2 26,773 817,647 - ------------------------------------------------------------------------ Walt Disney Co. (The) 1 302,100 9,425,520 ------------- 74,042,485 - ------------------------------------------------------------------------ MULTILINE RETAIL--0.1% Big Lots, Inc. 1,2 50,000 1,562,000 - ------------------------------------------------------------------------ Dollar Tree, Inc. 2 46,000 1,503,740 ------------- 3,065,740 - ------------------------------------------------------------------------ SPECIALTY RETAIL--3.4% Aeropostale, Inc. 1,2 46,000 1,441,180 - ------------------------------------------------------------------------ American Eagle Outfitters, Inc. 72,400 986,812 - ------------------------------------------------------------------------ AutoNation, Inc. 1,2 120,600 1,208,412 - ------------------------------------------------------------------------ AutoZone, Inc. 1,2 15,800 1,911,958 - ------------------------------------------------------------------------ bebe stores, inc. 1 26,300 252,743 - ------------------------------------------------------------------------ Best Buy Co., Inc. 1 421,600 16,695,360
F1 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------- SPECIALTY RETAIL Continued Dress Barn, Inc. (The) 1,2 33,200 $ 444,216 - ------------------------------------------------------------------------- Foot Locker, Inc. 1 18,000 224,100 - ------------------------------------------------------------------------- Gap, Inc. (The) 1 973,000 16,219,910 - ------------------------------------------------------------------------- Limited Brands, Inc. 1 101,800 1,715,330 - ------------------------------------------------------------------------- Office Depot, Inc. 2 115,900 1,267,946 - ------------------------------------------------------------------------- Penske Automotive Group, Inc. 1 31,500 464,310 - ------------------------------------------------------------------------- RadioShack Corp. 1 49,200 603,684 - ------------------------------------------------------------------------- Rent-A-Center, Inc. 1,2 23,400 481,338 - ------------------------------------------------------------------------- Ross Stores, Inc. 49,800 1,768,896 - ------------------------------------------------------------------------- Sally Beauty Holdings, Inc. 1,2 65,700 424,422 - ------------------------------------------------------------------------- Staples, Inc. 276,500 6,566,875 - ------------------------------------------------------------------------- TJX Cos., Inc. (The) 579,600 18,240,012 - ------------------------------------------------------------------------- Tractor Supply Co. 1,2 16,100 467,544 - ------------------------------------------------------------------------- Urban Outfitters, Inc. 1,2 49,100 1,531,429 -------------- 72,916,477 - ------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--0.2% Carter's, Inc. 1,2 6,700 92,594 - ------------------------------------------------------------------------- Fossil, Inc. 1,2 15,400 447,678 - ------------------------------------------------------------------------- Hanesbrands, Inc. 1,2 54,800 1,487,272 - ------------------------------------------------------------------------- Jones Apparel Group, Inc. 1 25,800 354,750 - ------------------------------------------------------------------------- Liz Claiborne, Inc. 1 31,500 445,725 - ------------------------------------------------------------------------- Wolverine World Wide, Inc. 1 18,400 490,728 -------------- 3,318,747 - ------------------------------------------------------------------------- CONSUMER STAPLES--5.9% - ------------------------------------------------------------------------- BEVERAGES--1.1% Coca-Cola Co. (The) 180,000 9,356,400 - ------------------------------------------------------------------------- Pepsi Bottling Group, Inc. (The) 1 35,000 977,200 - ------------------------------------------------------------------------- PepsiCo, Inc. 204,550 13,007,335 -------------- 23,340,935 - ------------------------------------------------------------------------- FOOD & STAPLES RETAILING--2.0% Casey's General Stores, Inc. 1 19,200 444,864 - ------------------------------------------------------------------------- Kroger Co. (The) 721,000 20,815,270 - ------------------------------------------------------------------------- Longs Drug Stores, Inc. 3,800 160,018 - ------------------------------------------------------------------------- Safeway, Inc. 422,100 12,050,955 - ------------------------------------------------------------------------- Wal-Mart Stores, Inc. 1 159,300 8,952,660 -------------- 42,423,767 - ------------------------------------------------------------------------- FOOD PRODUCTS--0.1% ConAgra Foods, Inc. 1 37,900 730,712 - ------------------------------------------------------------------------- Del Monte Foods Co. 24,600 174,660 - ------------------------------------------------------------------------- Fresh Del Monte Produce, Inc. 1,2 15,400 362,978 - ------------------------------------------------------------------------- Tyson Foods, Inc., Cl. A 1 115,000 1,718,100 -------------- 2,986,450
SHARES VALUE - ------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--1.0% Procter & Gamble Co. (The) 1 338,515 $ 20,585,097 - ------------------------------------------------------------------------- PERSONAL PRODUCTS--0.1% Herbalife Ltd. 1 37,800 1,464,750 - ------------------------------------------------------------------------- NBTY, Inc. 2 14,400 461,664 -------------- 1,926,414 - ------------------------------------------------------------------------- TOBACCO--1.6% Altria Group, Inc. 310,900 6,392,104 - ------------------------------------------------------------------------- Lorillard, Inc. 108,616 7,511,883 - ------------------------------------------------------------------------- Philip Morris International, Inc. 1 347,500 17,163,025 - ------------------------------------------------------------------------- Reynolds American, Inc. 40,500 1,890,135 - ------------------------------------------------------------------------- Universal Corp. 1 10,700 483,854 -------------- 33,441,001 - ------------------------------------------------------------------------- ENERGY--23.8% - ------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--3.0% Bristow Group, Inc. 1,2 4,400 217,756 - ------------------------------------------------------------------------- Dresser-Rand Group, Inc. 2 40,300 1,575,730 - ------------------------------------------------------------------------- Grey Wolf, Inc. 1,2 30,100 271,803 - ------------------------------------------------------------------------- Halliburton Co. 1 204,900 10,874,043 - ------------------------------------------------------------------------- Lufkin Industries, Inc. 1 6,300 524,664 - ------------------------------------------------------------------------- Noble Corp. 1 270,800 17,591,168 - ------------------------------------------------------------------------- Oil States International, Inc. 1,2 24,800 1,573,312 - ------------------------------------------------------------------------- Patterson-UTI Energy, Inc. 1 54,100 1,949,764 - ------------------------------------------------------------------------- Pioneer Drilling Co. 1,2 3,300 62,073 - ------------------------------------------------------------------------- Schlumberger Ltd. 183,100 19,670,433 - ------------------------------------------------------------------------- Seacor Holdings, Inc. 1,2 5,600 501,256 - ------------------------------------------------------------------------- Transocean, Inc. 1 46,800 7,131,852 - ------------------------------------------------------------------------- Unit Corp. 1,2 20,500 1,700,885 -------------- 63,644,739 - ------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--20.8% Anadarko Petroleum Corp. 298,700 22,354,708 - ------------------------------------------------------------------------- Apache Corp. 181,300 25,200,700 - ------------------------------------------------------------------------- Arch Coal, Inc. 1 29,900 2,243,397 - ------------------------------------------------------------------------- Bois d'Arc Energy, Inc. 2 2,700 65,637 - ------------------------------------------------------------------------- Chesapeake Energy Corp. 1 360,900 23,804,964 - ------------------------------------------------------------------------- Chevron Corp. 1 525,526 52,095,392 - ------------------------------------------------------------------------- ConocoPhillips 460,983 43,512,185 - ------------------------------------------------------------------------- Continental Resources, Inc. 1,2 22,000 1,525,040 - ------------------------------------------------------------------------- Delta Petroleum Corp. 1,2 13,300 339,416 - ------------------------------------------------------------------------- Denbury Resources, Inc. 2 62,800 2,292,200 - ------------------------------------------------------------------------- Devon Energy Corp. 1 69,500 8,351,120 - ------------------------------------------------------------------------- El Paso Corp. 3,500 76,090 - ------------------------------------------------------------------------- Exxon Mobil Corp. 1,186,756 104,588,806 - ------------------------------------------------------------------------- Hess Corp. 180,900 22,827,771
F2 | OPPENHEIMER MAIN STREET FUND/VA
SHARES VALUE - ---------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS Continued Marathon Oil Corp. 1 444,800 $ 23,071,776 - ---------------------------------------------------------------------------- Mariner Energy, Inc. 1,2 46,400 1,715,408 - ---------------------------------------------------------------------------- Massey Energy Co. 25,300 2,371,875 - ---------------------------------------------------------------------------- Murphy Oil Corp. 82,600 8,098,930 - ---------------------------------------------------------------------------- Noble Energy, Inc. 1 190,600 19,166,736 - ---------------------------------------------------------------------------- Occidental Petroleum Corp. 341,700 30,705,162 - ---------------------------------------------------------------------------- Overseas Shipholding Group, Inc. 1 19,600 1,558,592 - ---------------------------------------------------------------------------- Plains Exploration & Production Co. 2 28,600 2,086,942 - ---------------------------------------------------------------------------- Rosetta Resources, Inc. 1,2 17,400 495,900 - ---------------------------------------------------------------------------- Spectra Energy Corp. 1 253,300 7,279,842 - ---------------------------------------------------------------------------- Stone Energy Corp. 1,2 4,800 316,368 - ---------------------------------------------------------------------------- Swift Energy Co. 1,2 8,300 548,298 - ---------------------------------------------------------------------------- Valero Energy Corp. 1 401,600 16,537,888 - ---------------------------------------------------------------------------- VeraSun Energy Corp. 1,2 15,500 64,015 - ---------------------------------------------------------------------------- W&T Offshore, Inc. 1 25,900 1,515,409 - ---------------------------------------------------------------------------- Whiting Petroleum Corp. 1,2 8,500 901,680 - ---------------------------------------------------------------------------- Williams Cos., Inc. (The) 1 41,000 1,652,710 - ---------------------------------------------------------------------------- XTO Energy, Inc. 155,900 10,680,709 -------------- 438,045,666 - ---------------------------------------------------------------------------- FINANCIALS--8.3% - ---------------------------------------------------------------------------- CAPITAL MARKETS--1.2% Bank of New York Mellon Corp. 1 95,600 3,616,548 - ---------------------------------------------------------------------------- BlackRock, Inc. 1 36,400 6,442,800 - ---------------------------------------------------------------------------- Charles Schwab Corp. (The) 1 48,100 987,974 - ---------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 58,800 10,284,120 - ---------------------------------------------------------------------------- Invesco Ltd. 55,200 1,323,696 - ---------------------------------------------------------------------------- Knight Capital Group, Inc., Cl. A 1,2 28,900 519,622 - ---------------------------------------------------------------------------- TD Ameritrade Holding Corp. 2 98,000 1,772,820 -------------- 24,947,580 - ---------------------------------------------------------------------------- COMMERCIAL BANKS--0.6% Colonial BancGroup, Inc. (The) 1 63,900 282,438 - ---------------------------------------------------------------------------- First Horizon National Corp. 1 61,200 454,716 - ---------------------------------------------------------------------------- International Bancshares Corp. 1 7,800 166,686 - ---------------------------------------------------------------------------- National Penn Bancshares, Inc. 1 19,000 252,320 - ---------------------------------------------------------------------------- Old National Bancorp 1 31,900 454,894 - ---------------------------------------------------------------------------- Pacific Capital Bancorp 1 22,500 310,050 - ---------------------------------------------------------------------------- Park National Corp. 1 500 26,950 - ---------------------------------------------------------------------------- Popular, Inc. 1 148,500 978,615 - ---------------------------------------------------------------------------- Susquehanna Bancshares, Inc. 1 22,000 301,180 - ---------------------------------------------------------------------------- UnionBanCal Corp. 1 3,100 125,302 - ---------------------------------------------------------------------------- Wachovia Corp. 1 289,493 4,495,826 - ---------------------------------------------------------------------------- Webster Financial Corp. 1 26,800 498,480 - ---------------------------------------------------------------------------- Wells Fargo & Co. 1 134,100 3,184,875 - ---------------------------------------------------------------------------- Westamerica Bancorp 1 5,800 305,022 -------------- 11,837,354
SHARES VALUE - ---------------------------------------------------------------------------- CONSUMER FINANCE--0.1% Cash America International, Inc. 1 6,600 $ 204,600 - ---------------------------------------------------------------------------- Discover Financial Services 1 138,900 1,829,313 - ---------------------------------------------------------------------------- Student Loan Corp. (The) 1 1,900 186,352 -------------- 2,220,265 - ---------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--1.4% Bank of America Corp. 1 321,109 7,664,872 - ---------------------------------------------------------------------------- Citigroup, Inc. 294,388 4,933,943 - ---------------------------------------------------------------------------- JPMorgan Chase & Co. 1 442,044 15,166,530 - ---------------------------------------------------------------------------- Leucadia National Corp. 1 32,800 1,539,632 - ---------------------------------------------------------------------------- NASDAQ OMX Group, Inc. (The) 2 53,100 1,409,805 -------------- 30,714,782 - ---------------------------------------------------------------------------- INSURANCE--4.8% ACE Ltd. 1 284,300 15,662,087 - ---------------------------------------------------------------------------- Allied World Assurance Holdings Ltd. 16,700 661,654 - ---------------------------------------------------------------------------- American Financial Group, Inc. 52,400 1,401,700 - ---------------------------------------------------------------------------- American International Group, Inc. 1 32,740 866,300 - ---------------------------------------------------------------------------- American National Insurance Co. 1 500 49,010 - ---------------------------------------------------------------------------- Aon Corp. 1 45,600 2,094,864 - ---------------------------------------------------------------------------- Arch Capital Group Ltd. 2 23,200 1,538,624 - ---------------------------------------------------------------------------- Aspen Insurance Holdings Ltd. 1 20,900 494,703 - ---------------------------------------------------------------------------- Assurant, Inc. 1 32,100 2,117,316 - ---------------------------------------------------------------------------- Axis Capital Holdings Ltd. 56,600 1,687,246 - ---------------------------------------------------------------------------- Berkley (W.R.) Corp. 1 65,300 1,577,648 - ---------------------------------------------------------------------------- Berkshire Hathaway, Inc., Cl. B 1,2 3,550 14,242,600 - ---------------------------------------------------------------------------- Brown & Brown, Inc. 1 62,900 1,093,831 - ---------------------------------------------------------------------------- Chubb Corp. 1 368,800 18,074,888 - ---------------------------------------------------------------------------- Cincinnati Financial Corp. 1 26,100 662,940 - ---------------------------------------------------------------------------- CNA Financial Corp. 1 48,800 1,227,320 - ---------------------------------------------------------------------------- Conseco, Inc. 2 20,200 200,384 - ---------------------------------------------------------------------------- Employers Holdings, Inc. 1 9,400 194,580 - ---------------------------------------------------------------------------- Endurance Specialty Holdings Ltd. 1 16,000 492,640 - ---------------------------------------------------------------------------- Erie Indemnity Co., Cl. A 1 300 13,845 - ---------------------------------------------------------------------------- Fidelity National Title Group, Inc., Cl. A 1 114,700 1,445,220 - ---------------------------------------------------------------------------- First American Corp. 1 3,700 97,680 - ---------------------------------------------------------------------------- Genworth Financial, Inc., Cl. A 117,100 2,085,551 - ---------------------------------------------------------------------------- Hanover Insurance Group, Inc. 29,500 1,253,750 - ---------------------------------------------------------------------------- Harleysville Group, Inc. 1 5,600 189,448 - ---------------------------------------------------------------------------- HCC Insurance Holdings, Inc. 1 37,700 796,978 - ---------------------------------------------------------------------------- IPC Holdings Ltd. 18,100 480,555 - ---------------------------------------------------------------------------- Loews Corp. 129,333 6,065,718 - ---------------------------------------------------------------------------- Max Capital Group Ltd. 1 15,200 324,216 - ---------------------------------------------------------------------------- Montpelier Re Holdings Ltd. 1 1,500 22,125 - ---------------------------------------------------------------------------- Nationwide Financial Services, Inc., Cl. A 1 6,900 331,269
F3 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------- INSURANCE Continued Odyssey Re Holdings Corp. 1 36,700 $ 1,302,850 - ------------------------------------------------------------------------- OneBeacon Insurance Group Ltd. 1 5,900 103,663 - ------------------------------------------------------------------------- Partnerre Holdings Ltd. 1 23,400 1,617,642 - ------------------------------------------------------------------------- Philadelphia Consolidated Holding Co. 1,2 22,800 774,516 - ------------------------------------------------------------------------- Platinum Underwriters Holdings Ltd. 1 14,800 482,628 - ------------------------------------------------------------------------- ProAssurance Corp. 1,2 4,600 221,306 - ------------------------------------------------------------------------- Protective Life Corp. 38,100 1,449,705 - ------------------------------------------------------------------------- Reinsurance Group of America, Inc. 1 2,100 91,392 - ------------------------------------------------------------------------- RenaissanceRe Holdings Ltd. 21,000 938,070 - ------------------------------------------------------------------------- Safeco Corp. 21,000 1,410,360 - ------------------------------------------------------------------------- Selective Insurance Group, Inc. 1 8,200 153,832 - ------------------------------------------------------------------------- StanCorp Financial Group, Inc. 1 29,600 1,390,016 - ------------------------------------------------------------------------- State Auto Financial Corp. 1,100 26,323 - ------------------------------------------------------------------------- Torchmark Corp. 1 2,400 140,760 - ------------------------------------------------------------------------- Transatlantic Holdings, Inc. 5,900 333,173 - ------------------------------------------------------------------------- Travelers Cos., Inc. (The) 231,800 10,060,120 - ------------------------------------------------------------------------- Unitrin, Inc. 600 16,542 - ------------------------------------------------------------------------- UnumProvident Corp. 1 95,500 1,952,975 - ------------------------------------------------------------------------- White Mountains Insurance Group Ltd. 1 700 300,300 - ------------------------------------------------------------------------- Willis Group Holdings Ltd. 1 36,700 1,151,279 - ------------------------------------------------------------------------- Zenith National Insurance Corp. 1 1,700 59,772 -------------- 101,423,914 - ------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS--0.1% General Growth Properties, Inc. 1 31,400 1,099,942 - ------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--0.1% Hudson City Bancorp, Inc. 138,200 2,305,176 - ------------------------------------------------------------------------- TFS Financial Corp. 1 18,000 208,620 -------------- 2,513,796 - ------------------------------------------------------------------------- HEALTH CARE--5.8% - ------------------------------------------------------------------------- BIOTECHNOLOGY--0.6% Amgen, Inc. 1,2 164,300 7,748,388 - ------------------------------------------------------------------------- Genentech, Inc. 1,2 69,600 5,282,640 - ------------------------------------------------------------------------- Martek Biosciences Corp. 1,2 15,000 505,650 -------------- 13,536,678 - ------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--0.1% Analogic Corp. 1 4,900 309,043 - ------------------------------------------------------------------------- Boston Scientific Corp. 2 75,400 926,666 - ------------------------------------------------------------------------- Hill-Rom Holdings, Inc. 1 16,500 445,170 - ------------------------------------------------------------------------- Sirona Dental Systems, Inc. 1,2 10,100 261,792 -------------- 1,942,671 - ------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--1.7% Aetna, Inc. 1 401,000 16,252,530
SHARES VALUE - ------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES Continued Centene Corp. 1,2 7,000 $ 117,530 - ------------------------------------------------------------------------- Health Net, Inc. 2 53,200 1,279,992 - ------------------------------------------------------------------------- Healthspring, Inc. 1,2 14,900 251,512 - ------------------------------------------------------------------------- LifePoint Hospitals, Inc. 1,2 17,500 495,250 - ------------------------------------------------------------------------- Lincare Holdings, Inc. 2 18,500 525,400 - ------------------------------------------------------------------------- Owens & Minor, Inc. 1 10,900 498,021 - ------------------------------------------------------------------------- UnitedHealth Group, Inc. 123,948 3,253,635 - ------------------------------------------------------------------------- Universal Health Services, Inc., Cl. B 1 18,800 1,188,536 - ------------------------------------------------------------------------- WellPoint, Inc. 2 269,200 12,830,072 -------------- 36,692,478 - ------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--0.1% Pharmaceutical Product Development, Inc. 39,200 1,681,680 - ------------------------------------------------------------------------- Varian, Inc. 2 7,700 393,162 -------------- 2,074,842 - ------------------------------------------------------------------------- PHARMACEUTICALS--3.3% Abbott Laboratories 21,400 1,133,558 - ------------------------------------------------------------------------- Alpharma, Inc., Cl. A 1,2 21,500 484,395 - ------------------------------------------------------------------------- Eli Lilly & Co. 91,600 4,228,256 - ------------------------------------------------------------------------- Endo Pharmaceuticals Holdings, Inc. 2 3,000 72,570 - ------------------------------------------------------------------------- Johnson & Johnson 1 412,406 26,534,202 - ------------------------------------------------------------------------- King Pharmaceuticals, Inc. 2 154,300 1,615,521 - ------------------------------------------------------------------------- Merck & Co., Inc. 335,000 12,626,150 - ------------------------------------------------------------------------- Pfizer, Inc. 1,081,200 18,888,564 - ------------------------------------------------------------------------- Sepracor, Inc. 1,2 75,000 1,494,000 - ------------------------------------------------------------------------- Warner Chilcott Ltd., Cl. A 1,2 29,100 493,245 - ------------------------------------------------------------------------- Watson Pharmaceuticals, Inc. 2 57,400 1,559,558 -------------- 69,130,019 - ------------------------------------------------------------------------- INDUSTRIALS--13.2% - ------------------------------------------------------------------------- AEROSPACE & DEFENSE--3.8% BE Aerospace, Inc. 1,2 57,900 1,348,491 - ------------------------------------------------------------------------- Boeing Co. 1 310,400 20,399,488 - ------------------------------------------------------------------------- Ceradyne, Inc. 1,2 10,000 343,000 - ------------------------------------------------------------------------- DRS Technologies, Inc. 11,200 881,664 - ------------------------------------------------------------------------- Esterline Technologies Corp. 2 9,800 482,748 - ------------------------------------------------------------------------- General Dynamics Corp. 47,300 3,982,660 - ------------------------------------------------------------------------- Honeywell International, Inc. 146,800 7,381,104 - ------------------------------------------------------------------------- L-3 Communications Holdings, Inc. 51,800 4,707,066 - ------------------------------------------------------------------------- Northrop Grumman Corp. 219,000 14,651,100 - ------------------------------------------------------------------------- Raytheon Co. 240,400 13,529,712 - ------------------------------------------------------------------------- Triumph Group, Inc. 1 10,000 471,000 - ------------------------------------------------------------------------- United Technologies Corp. 1 179,300 11,062,810 -------------- 79,240,843
F4 | OPPENHEIMER MAIN STREET FUND/VA
SHARES VALUE - ------------------------------------------------------------------------ AIR FREIGHT & LOGISTICS--0.0% FedEx Corp. 900 $ 70,911 - ------------------------------------------------------------------------ Hub Group, Inc., Cl. A 2 15,400 525,602 ------------- 596,513 - ------------------------------------------------------------------------ AIRLINES--0.0% SkyWest, Inc. 1 23,000 290,950 - ------------------------------------------------------------------------ BUILDING PRODUCTS--0.0% Lennox International, Inc. 14,900 431,504 - ------------------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES--1.3% Brink's Co. (The) 23,500 1,537,370 - ------------------------------------------------------------------------ ChoicePoint, Inc. 2 6,200 298,840 - ------------------------------------------------------------------------ Copart, Inc. 2 14,300 612,326 - ------------------------------------------------------------------------ Deluxe Corp. 25,100 447,282 - ------------------------------------------------------------------------ First Advantage Corp., Cl. A 1,2 1,000 15,850 - ------------------------------------------------------------------------ Ikon Office Solutions, Inc. 1 39,200 442,176 - ------------------------------------------------------------------------ Korn-Ferry International 1,2 3,600 56,628 - ------------------------------------------------------------------------ Manpower, Inc. 30,300 1,764,672 - ------------------------------------------------------------------------ Miller (Herman), Inc. 1 21,300 530,157 - ------------------------------------------------------------------------ Monster Worldwide, Inc. 1,2 73,300 1,510,713 - ------------------------------------------------------------------------ MPS Group, Inc. 1,2 37,800 401,814 - ------------------------------------------------------------------------ R.R. Donnelley & Sons Co. 1 64,600 1,917,974 - ------------------------------------------------------------------------ Resources Connection, Inc. 1 12,400 252,340 - ------------------------------------------------------------------------ Robert Half International, Inc. 1 67,400 1,615,578 - ------------------------------------------------------------------------ Steelcase, Inc., Cl. A 1 38,500 386,155 - ------------------------------------------------------------------------ Sykes Enterprises, Inc. 1,2 8,900 167,854 - ------------------------------------------------------------------------ TeleTech Holdings, Inc. 2 400 7,984 - ------------------------------------------------------------------------ United Stationers, Inc. 1,2 4,500 166,275 - ------------------------------------------------------------------------ Waste Management, Inc. 395,100 14,899,221 - ------------------------------------------------------------------------ Watson Wyatt & Co. Holdings 1 20,500 1,084,245 ------------- 28,115,454 - ------------------------------------------------------------------------ CONSTRUCTION & ENGINEERING--0.2% Aecom Technology Corp. 2 44,200 1,437,826 - ------------------------------------------------------------------------ KBR, Inc. 52,900 1,846,739 ------------- 3,284,565 - ------------------------------------------------------------------------ ELECTRICAL EQUIPMENT--0.4% Acuity Brands, Inc. 1 10,100 485,608 - ------------------------------------------------------------------------ Belden, Inc. 1 13,900 470,932 - ------------------------------------------------------------------------ Cooper Industries Ltd., Cl. A 21,300 841,350 - ------------------------------------------------------------------------ Emerson Electric Co. 66,100 3,268,645 - ------------------------------------------------------------------------ GrafTech International Ltd. 2 58,300 1,564,189 - ------------------------------------------------------------------------ Thomas & Betts Corp. 1,2 38,200 1,445,870 - ------------------------------------------------------------------------ Woodward Governor Co. 1 36,500 1,301,590 ------------- 9,378,184
SHARES VALUE - ------------------------------------------------------------------------ INDUSTRIAL CONGLOMERATES--2.4% 3M Co. 109,300 $ 7,606,187 - ------------------------------------------------------------------------ General Electric Co. 1,254,000 33,469,260 - ------------------------------------------------------------------------ Textron, Inc. 31,000 1,485,830 - ------------------------------------------------------------------------ Tyco International Ltd. 1 182,175 7,294,287 - ------------------------------------------------------------------------ Walter Industries, Inc. 13,300 1,446,641 -------------- 51,302,205 - ------------------------------------------------------------------------ MACHINERY--3.6% Caterpillar, Inc. 258,900 19,111,998 - ------------------------------------------------------------------------ Crane Co. 8,600 331,358 - ------------------------------------------------------------------------ Cummins, Inc. 259,000 16,969,680 - ------------------------------------------------------------------------ Dover Corp. 45,800 2,215,346 - ------------------------------------------------------------------------ Eaton Corp. 3,700 314,389 - ------------------------------------------------------------------------ Gardner Denver, Inc. 1,2 29,000 1,647,200 - ------------------------------------------------------------------------ IDEX Corp. 1 41,000 1,510,440 - ------------------------------------------------------------------------ Illinois Tool Works, Inc. 105,700 5,021,807 - ------------------------------------------------------------------------ Ingersoll-Rand Co. Ltd., Cl. A 1 160,300 6,000,029 - ------------------------------------------------------------------------ Kennametal, Inc. 40,500 1,318,275 - ------------------------------------------------------------------------ Lincoln Electric Holdings, Inc. 17,600 1,385,120 - ------------------------------------------------------------------------ Mueller Industries, Inc. 13,800 444,360 - ------------------------------------------------------------------------ Navistar International Corp. 2 2,100 138,222 - ------------------------------------------------------------------------ Nordson Corp. 1 19,800 1,443,222 - ------------------------------------------------------------------------ Oshkosh Corp. 1 8,800 182,072 - ------------------------------------------------------------------------ Parker-Hannifin Corp. 193,000 13,764,760 - ------------------------------------------------------------------------ Pentair, Inc. 1 17,100 598,842 - ------------------------------------------------------------------------ Timken Co. 1 45,500 1,498,770 - ------------------------------------------------------------------------ Toro Co. (The) 1 14,100 469,107 - ------------------------------------------------------------------------ Wabtec Corp. 1 11,700 568,854 -------------- 74,933,851 - ------------------------------------------------------------------------ ROAD & RAIL--1.3% Arkansas Best Corp. 1 14,100 516,624 - ------------------------------------------------------------------------ Avis Budget Group, Inc. 2 43,500 364,095 - ------------------------------------------------------------------------ CSX Corp. 86,400 5,426,784 - ------------------------------------------------------------------------ Hertz Global Holdings, Inc. 1,2 122,100 1,172,160 - ------------------------------------------------------------------------ Norfolk Southern Corp. 1 292,900 18,356,043 - ------------------------------------------------------------------------ Ryder Systems, Inc. 1 23,800 1,639,344 - ------------------------------------------------------------------------ Werner Enterprises, Inc. 1 8,100 150,498 - ------------------------------------------------------------------------ YRC Worldwide, Inc. 1,2 16,600 246,842 -------------- 27,872,390 - ------------------------------------------------------------------------ TRADING COMPANIES & DISTRIBUTORS--0.2% Applied Industrial Technologies, Inc. 1 19,000 459,230 - ------------------------------------------------------------------------ Fastenal Co. 1 11,700 504,972 - ------------------------------------------------------------------------ GATX Corp. 1 11,300 500,929 - ------------------------------------------------------------------------ MSC Industrial Direct Co., Inc., Cl. A 1 30,700 1,354,177
F5 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - -------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS Continued United Rentals, Inc. 1,2 23,600 $ 462,796 - -------------------------------------------------------------------------------------- WESCO International, Inc. 1,2 12,200 488,488 -------------- 3,770,592 - -------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--21.1% - -------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--2.4% Avocent Corp. 2 17,500 325,500 - -------------------------------------------------------------------------------------- Brocade Communications Systems, Inc. 2 186,700 1,538,408 - -------------------------------------------------------------------------------------- Cisco Systems, Inc. 1,2 1,118,800 26,023,288 - -------------------------------------------------------------------------------------- Corning, Inc. 201,800 4,651,490 - -------------------------------------------------------------------------------------- EchoStar Holding Corp. 1,2 25,060 782,373 - -------------------------------------------------------------------------------------- Emulex Corp. 2 38,600 449,690 - -------------------------------------------------------------------------------------- Harris Corp. 29,700 1,499,553 - -------------------------------------------------------------------------------------- JDS Uniphase Corp. 1,2 128,900 1,464,304 - -------------------------------------------------------------------------------------- Plantronics, Inc. 1 21,800 486,576 - -------------------------------------------------------------------------------------- QUALCOMM, Inc. 260,700 11,567,259 - -------------------------------------------------------------------------------------- Tekelec, Inc. 1,2 31,600 464,836 - -------------------------------------------------------------------------------------- Tellabs, Inc. 1,2 137,900 641,235 -------------- 49,894,512 - -------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--5.5% Apple, Inc. 2 134,400 22,503,936 - -------------------------------------------------------------------------------------- EMC Corp. 1,2 242,400 3,560,856 - -------------------------------------------------------------------------------------- Hewlett-Packard Co. 901,400 39,850,894 - -------------------------------------------------------------------------------------- International Business Machines Corp. 281,600 33,378,048 - -------------------------------------------------------------------------------------- Lexmark International, Inc., Cl. A 1,2 46,300 1,547,809 - -------------------------------------------------------------------------------------- NCR Corp. 2 66,600 1,678,320 - -------------------------------------------------------------------------------------- QLogic Corp. 2 34,100 497,519 - -------------------------------------------------------------------------------------- Seagate Technology 372,500 7,125,925 - -------------------------------------------------------------------------------------- Sun Microsystems, Inc. 1,2 331,300 3,604,544 - -------------------------------------------------------------------------------------- Synaptics, Inc. 1,2 13,000 490,490 - -------------------------------------------------------------------------------------- Western Digital Corp. 1,2 59,000 2,037,270 -------------- 116,275,611 - -------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--1.1% Agilent Technologies, Inc. 2 179,200 6,368,768 - -------------------------------------------------------------------------------------- Amphenol Corp., Cl. A 1 46,400 2,082,432 - -------------------------------------------------------------------------------------- Arrow Electronics, Inc. 2 53,700 1,649,664 - -------------------------------------------------------------------------------------- Avnet, Inc. 2 59,400 1,620,432 - -------------------------------------------------------------------------------------- AVX Corp. 1 20,800 235,248 - -------------------------------------------------------------------------------------- Benchmark Electronics, Inc. 1,2 29,300 478,762 - -------------------------------------------------------------------------------------- Checkpoint Systems, Inc. 2 800 16,704 - -------------------------------------------------------------------------------------- Cognex Corp. 1 10,100 232,805 - -------------------------------------------------------------------------------------- Coherent, Inc. 1,2 4,800 143,472 - -------------------------------------------------------------------------------------- Ingram Micro, Inc., Cl. A 1,2 83,800 1,487,450
SHARES VALUE - -------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Continued Jabil Circuit, Inc. 106,600 $ 1,749,306 - -------------------------------------------------------------------------------------- Molex, Inc. 1 61,200 1,493,892 - -------------------------------------------------------------------------------------- National Instruments Corp. 1 23,600 669,532 - -------------------------------------------------------------------------------------- Plexus Corp. 1,2 17,200 476,096 - -------------------------------------------------------------------------------------- Rofin-Sinar Technologies, Inc. 1,2 300 9,060 - -------------------------------------------------------------------------------------- Sanmina-SCI Corp. 1,2 17,200 22,016 - -------------------------------------------------------------------------------------- Tech Data Corp. 1,2 8,575 290,607 - -------------------------------------------------------------------------------------- Technitrol, Inc. 1 7,600 129,124 - -------------------------------------------------------------------------------------- Trimble Navigation Ltd. 1,2 47,600 1,699,320 - -------------------------------------------------------------------------------------- Tyco Electronics Ltd. 58,600 2,099,052 - -------------------------------------------------------------------------------------- Vishay Intertechnology, Inc. 1,2 20,100 178,287 -------------- 23,132,029 - -------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--0.9% Google, Inc., Cl. A 2 34,100 17,950,922 - -------------------------------------------------------------------------------------- j2 Global Communications, Inc. 1,2 19,900 457,700 - -------------------------------------------------------------------------------------- Open Text Corp. 1,2 15,600 500,760 -------------- 18,909,382 - -------------------------------------------------------------------------------------- IT SERVICES--0.9% Affiliated Computer Services, Inc., Cl. A 2 33,600 1,797,264 - -------------------------------------------------------------------------------------- Broadridge Financial Solutions, Inc. 1 55,100 1,159,855 - -------------------------------------------------------------------------------------- Computer Sciences Corp. 2 44,100 2,065,644 - -------------------------------------------------------------------------------------- Convergys Corp. 1,2 33,200 493,352 - -------------------------------------------------------------------------------------- Electronic Data Systems Corp. 189,300 4,664,352 - -------------------------------------------------------------------------------------- Gartner, Inc. 1,2 24,100 499,352 - -------------------------------------------------------------------------------------- Hewitt Associates, Inc. 1,2 42,000 1,609,860 - -------------------------------------------------------------------------------------- Metavante Technologies, Inc. 900 20,358 - -------------------------------------------------------------------------------------- Perot Systems Corp., Cl. A 1,2 13,000 195,130 - -------------------------------------------------------------------------------------- Visa, Inc., Cl. A 2 78,570 6,388,527 -------------- 18,893,694 - -------------------------------------------------------------------------------------- OFFICE ELECTRONICS--0.7% Xerox Corp. 1 935,200 12,681,312 - -------------------------------------------------------------------------------------- Zebra Technologies Corp., Cl. A 2 26,800 874,752 -------------- 13,556,064 - -------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.7% Altera Corp. 1 91,100 1,885,770 - -------------------------------------------------------------------------------------- Amkor Technology, Inc. 1,2 49,200 512,172 - -------------------------------------------------------------------------------------- Analog Devices, Inc. 1 71,900 2,284,263 - -------------------------------------------------------------------------------------- Applied Materials, Inc. 1,087,000 20,750,830 - -------------------------------------------------------------------------------------- Entegris, Inc. 2 29,700 194,535 - -------------------------------------------------------------------------------------- Fairchild Semiconductor International, Inc., Cl. A 1,2 40,200 471,546 - -------------------------------------------------------------------------------------- Integrated Device Technology, Inc. 1,2 50,100 497,994 - -------------------------------------------------------------------------------------- Intel Corp. 1,735,500 37,278,540
F6 | OPPENHEIMER MAIN STREET FUND/VA
SHARES VALUE - ---------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued Intersil Corp., Cl. A 1 62,600 $ 1,522,432 - ---------------------------------------------------------------------------------- KLA-Tencor Corp. 1 50,000 2,035,500 - ---------------------------------------------------------------------------------- Linear Technology Corp. 1 62,800 2,045,396 - ---------------------------------------------------------------------------------- LSI Corp. 2 255,300 1,567,542 - ---------------------------------------------------------------------------------- Marvell Technology Group Ltd. 2 131,700 2,325,822 - ---------------------------------------------------------------------------------- MKS Instruments, Inc. 1,2 22,100 483,990 - ---------------------------------------------------------------------------------- National Semiconductor Corp. 86,000 1,766,440 - ---------------------------------------------------------------------------------- Semtech Corp. 1,2 34,200 481,194 - ---------------------------------------------------------------------------------- Teradyne, Inc. 1,2 130,700 1,446,849 - ---------------------------------------------------------------------------------- Texas Instruments, Inc. 1 783,200 22,054,912 -------------- 99,605,727 - ---------------------------------------------------------------------------------- SOFTWARE--4.9% Activision, Inc. 2 36,700 1,250,369 - ---------------------------------------------------------------------------------- Amdocs Ltd. 1,2 62,600 1,841,692 - ---------------------------------------------------------------------------------- Ansys, Inc. 1,2 5,300 249,736 - ---------------------------------------------------------------------------------- Autodesk, Inc. 1,2 60,100 2,031,981 - ---------------------------------------------------------------------------------- BMC Software, Inc. 2 47,900 1,724,400 - ---------------------------------------------------------------------------------- CA, Inc. 228,100 5,266,829 - ---------------------------------------------------------------------------------- Cadence Design Systems, Inc. 2 145,000 1,464,500 - ---------------------------------------------------------------------------------- Check Point Software Technologies Ltd. 2 52,200 1,235,574 - ---------------------------------------------------------------------------------- Compuware Corp. 1,2 159,600 1,522,584 - ---------------------------------------------------------------------------------- Intuit, Inc. 1,2 81,300 2,241,441 - ---------------------------------------------------------------------------------- Lawson Software, Inc. 1,2 46,000 334,420 - ---------------------------------------------------------------------------------- MICROS Systems, Inc. 1,2 9,700 295,753 - ---------------------------------------------------------------------------------- Microsoft Corp. 1 1,884,600 51,845,346 - ---------------------------------------------------------------------------------- Net 1 UEPS Technologies, Inc. 1,2 7,500 182,250 - ---------------------------------------------------------------------------------- Oracle Corp. 2 598,000 12,558,000 - ---------------------------------------------------------------------------------- Progress Software Corp. 2 5,100 130,407 - ---------------------------------------------------------------------------------- Sybase, Inc. 1,2 48,100 1,415,102 - ---------------------------------------------------------------------------------- Symantec Corp. 2 883,700 17,099,595 - ---------------------------------------------------------------------------------- Synopsys, Inc. 1,2 46,100 1,102,251 - ---------------------------------------------------------------------------------- TIBCO Software, Inc. 1,2 69,500 531,675 -------------- 104,323,905 - ---------------------------------------------------------------------------------- MATERIALS--7.4% - ---------------------------------------------------------------------------------- CHEMICALS--2.6% Celanese Corp., Series A 38,900 1,776,174 - ---------------------------------------------------------------------------------- CF Industries Holdings, Inc. 14,400 2,200,320 - ---------------------------------------------------------------------------------- Chemtura Corp. 1 52,100 304,264 - ---------------------------------------------------------------------------------- Cytec Industries, Inc. 13,400 731,104 - ---------------------------------------------------------------------------------- Dow Chemical Co. (The) 115,500 4,032,105 - ---------------------------------------------------------------------------------- Ferro Corp. 1,900 35,644 - ---------------------------------------------------------------------------------- FMC Corp. 1 10,640 823,962 - ---------------------------------------------------------------------------------- Fuller (H.B.) Co. 21,000 471,240 - ---------------------------------------------------------------------------------- Hercules, Inc. 1 68,000 1,151,240
SHARES VALUE - ---------------------------------------------------------------------------------- CHEMICALS Continued Minerals Technologies, Inc. 1 7,300 $ 464,207 - ---------------------------------------------------------------------------------- Monsanto Co. 1 204,000 25,793,760 - ---------------------------------------------------------------------------------- Mosaic Co. (The) 2 69,300 10,027,710 - ---------------------------------------------------------------------------------- Nalco Holding Co. 1 69,900 1,478,385 - ---------------------------------------------------------------------------------- NewMarket Corp. 1 2,900 192,067 - ---------------------------------------------------------------------------------- NOVA Chemicals Corp. 19,400 478,598 - ---------------------------------------------------------------------------------- Olin Corp. 1 20,000 523,600 - ---------------------------------------------------------------------------------- RPM International, Inc. 1 63,300 1,303,980 - ---------------------------------------------------------------------------------- Terra Industries, Inc. 1 36,400 1,796,340 - ---------------------------------------------------------------------------------- Valhi, Inc. 1 3,700 100,825 - ---------------------------------------------------------------------------------- Valspar Corp. (The) 1 25,500 482,205 -------------- 54,167,730 - ---------------------------------------------------------------------------------- CONTAINERS & PACKAGING--0.4% AptarGroup, Inc. 8,900 373,355 - ---------------------------------------------------------------------------------- Ball Corp. 11,200 534,688 - ---------------------------------------------------------------------------------- Crown Holdings, Inc. 2 63,400 1,647,766 - ---------------------------------------------------------------------------------- Greif, Inc., Cl. A 1 22,900 1,466,287 - ---------------------------------------------------------------------------------- Owens-Illinois, Inc. 2 43,800 1,826,022 - ---------------------------------------------------------------------------------- Rock-Tenn Co., Cl. A 1 15,800 473,842 - ---------------------------------------------------------------------------------- Sealed Air Corp. 1 78,300 1,488,483 - ---------------------------------------------------------------------------------- Sonoco Products Co. 44,500 1,377,275 -------------- 9,187,718 - ---------------------------------------------------------------------------------- METALS & MINING--4.4% AK Steel Holding Corp. 1 31,200 2,152,800 - ---------------------------------------------------------------------------------- Alcoa, Inc. 526,700 18,761,054 - ---------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., Cl. B 1 211,700 24,809,123 - ---------------------------------------------------------------------------------- Kaiser Aluminum Corp. 1 8,300 444,299 - ---------------------------------------------------------------------------------- Newmont Mining Corp. 1 23,800 1,241,408 - ---------------------------------------------------------------------------------- Nucor Corp. 271,400 20,265,438 - ---------------------------------------------------------------------------------- Reliance Steel & Aluminum Co. 1 25,800 1,988,922 - ---------------------------------------------------------------------------------- Schnitzer Steel Industries, Inc. 1 15,200 1,741,920 - ---------------------------------------------------------------------------------- Southern Copper Corp. 1 157,100 16,751,573 - ---------------------------------------------------------------------------------- United States Steel Corp. 1 26,300 4,859,714 - ---------------------------------------------------------------------------------- Worthington Industries, Inc. 1 13,000 266,500 -------------- 93,282,751 - ---------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.0% Domtar Corp. 2 73,700 401,665 - ---------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--3.5% - ---------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--2.3% AT&T, Inc. 906,228 30,530,821 - ---------------------------------------------------------------------------------- CenturyTel, Inc. 1 6,700 238,453 - ---------------------------------------------------------------------------------- Embarq Corp. 44,500 2,103,515 - ---------------------------------------------------------------------------------- NTELOS Holdings Corp. 7,000 177,590
F7 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - -------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Continued Premiere Global Services, Inc. 1,2 19,400 $ 282,852 - -------------------------------------------------------------------------------------------------- Verizon Communications, Inc. 1 364,456 12,901,742 - -------------------------------------------------------------------------------------------------- Windstream Corp. 146,800 1,811,512 ---------------- 48,046,485 - -------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--1.2% Clearwire Corp., Cl. A 1,2 22,500 291,600 - -------------------------------------------------------------------------------------------------- MetroPCS Communications, Inc. 1,2 70,700 1,252,097 - -------------------------------------------------------------------------------------------------- Sprint Nextel Corp. 1 2,190,623 20,810,919 - -------------------------------------------------------------------------------------------------- Syniverse Holdings, Inc. 2 28,100 455,220 - -------------------------------------------------------------------------------------------------- Telephone & Data Systems, Inc. 1 36,300 1,715,901 - -------------------------------------------------------------------------------------------------- United States Cellular Corp. 1,2 9,200 520,260 ---------------- 25,045,997 - -------------------------------------------------------------------------------------------------- UTILITIES--1.5% - -------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--1.2% American Electric Power Co., Inc. 33,600 1,351,728 - -------------------------------------------------------------------------------------------------- DPL, Inc. 1 57,100 1,506,298 - -------------------------------------------------------------------------------------------------- Duke Energy Corp. 746,200 12,968,956 - -------------------------------------------------------------------------------------------------- Edison International, Inc. 16,400 842,632 - -------------------------------------------------------------------------------------------------- FirstEnergy Corp. 95,900 7,895,447 - -------------------------------------------------------------------------------------------------- Sierra Pacific Resources 49,400 627,874 ---------------- 25,192,935 - -------------------------------------------------------------------------------------------------- ENERGY TRADERS--0.2% Mirant Corp. 1,2 55,000 2,153,250 - -------------------------------------------------------------------------------------------------- Reliant Energy, Inc. 2 92,300 1,963,221 ---------------- 4,116,471 - -------------------------------------------------------------------------------------------------- GAS UTILITIES--0.0% Laclede Group, Inc. (The) 1 9,500 383,515 - -------------------------------------------------------------------------------------------------- WGL Holdings, Inc. 1 14,400 500,256 ---------------- 883,771 - -------------------------------------------------------------------------------------------------- MULTI-UTILITIES--0.1% Alliant Energy Corp. 2,100 71,945 - -------------------------------------------------------------------------------------------------- Avista Corp. 1 21,000 450,660 - -------------------------------------------------------------------------------------------------- Integrys Energy Group, Inc. 1 32,100 1,631,643 ---------------- 2,154,248 ---------------- Total Common Stocks (Cost $1,941,656,654) 2,108,146,678 - -------------------------------------------------------------------------------------------------- OTHER SECURITIES--0.0% - -------------------------------------------------------------------------------------------------- Seagate Technology International, Inc. 2,3,4 (Cost $0) 31,000 3,100 - -------------------------------------------------------------------------------------------------- PREFERRED STOCKS--0.0% - -------------------------------------------------------------------------------------------------- Wachovia Corp., Dividend Equalization Preferred Shares 2,4 (Cost $0) 6,000 15
UNITS VALUE - -------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - -------------------------------------------------------------------------------------------------- Dime Bancorp, Inc. Wts., Strike Price $1, Exp. 1/2/10 2 31,900 $ 9,411 - -------------------------------------------------------------------------------------------------- Progress Energy, Inc., Contingent Value Obligation 2,4 32,000 10,560 ---------------- Total Rights, Warrants and Certificates (Cost $0) 19,971 - -------------------------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $1,941,656,654) 2,108,169,764
PRINCIPAL AMOUNT - -------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--23.7% 5 - -------------------------------------------------------------------------------------------------- ASSET-BACKED FLOATING NOTE--0.0% GSAA Home Equity Trust, Series 2005-15, Cl. 2A1, 2.573%, 7/25/08 $ 666,648 666,648 - -------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--22.7% 6 Repurchase agreement (Principal Amount/Value $478,542,270, with a maturity value of $478,578,161) with Barclays Capital, 2.70%, dated 6/30/08, to be repurchased at $133,552,286 on 7/1/08, collateralized by 27.90% of various securities, 0%-7.325%, 12/15/10-11/20/56, with a value of $498,463,116 478,542,270 478,542,270 - -------------------------------------------------------------------------------------------------- MEDIUM-TERM FLOATING NOTE--1.0% ANZ National (Int'l) Ltd., 2.114%, 7/1/08 3,999,215 3,999,215 - -------------------------------------------------------------------------------------------------- CAM US Finance SA Unipersonal, 2.923%,8/1/08 4,500,000 4,500,000 - -------------------------------------------------------------------------------------------------- CC USA, Inc., 2.133%, 7/1/08 1,499,597 1,499,597 - -------------------------------------------------------------------------------------------------- HSBC Finance Corp., 2.47%, 7/7/08 3,000,000 3,000,000 - -------------------------------------------------------------------------------------------------- Metropolitan Life Global Funding, 2.481%, 7/22/08 3,500,000 3,500,000 - -------------------------------------------------------------------------------------------------- Nationwide Global Fund I, 2.779%, 9/15/08 4,001,344 4,001,344 ----------------- 20,500,156 ----------------- Total Investments Purchased with Cash Collateral from Securities Loaned (Cost $499,709,074) 499,709,074 - -------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $2,441,365,728) 123.5% 2,607,878,838 - -------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (23.5) (496,819,573) ------------------------------------- NET ASSETS 100.0% $ 2,111,059,265 =====================================
F8 | OPPENHEIMER MAIN STREET FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Partial or fully-loaned security. See Note 6 of accompanying Notes. 2. Non-income producing security. 3. Escrow shares received as the result of issuer reorganization. 4. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $13,675, which represents less than .005% of the Fund's net assets. See Note 5 of accompanying Notes. 5. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 6 of accompanying Notes. 6. The Fund may have elements of risk due to concentrated investments. Such concentrations may subject the Fund to additional risks. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1--quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2--inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3--unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* ---------------------------------------------------------------------------------------- Level 1--Quoted Prices $2,108,156,104 $-- Level 2--Other Significant Observable Inputs 499,722,734 -- Level 3--Significant Unobservable Inputs -- -- ---------------------------------- Total $2,607,878,838 $-- ==================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. The following issuer is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. There were no affiliate securities held by the Fund as of June 30, 2008. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - --------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 15,628,720 217,739,160 233,367,880 --
DIVIDEND INCOME - --------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $224,107
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F9 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------------------- Investments, at value (including cost and market value of $478,542,270 in repurchase agreements) (cost $2,441,365,728)--see accompanying statement of investments $ 2,607,878,838 - -------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 54,527,115 Dividends 2,086,494 Other 67,553 ----------------- Total assets 2,664,560,000 - -------------------------------------------------------------------------------------------- LIABILITIES - -------------------------------------------------------------------------------------------- Bank overdraft 14,903,517 - -------------------------------------------------------------------------------------------- Return of collateral for securities loaned 499,736,349 - -------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 34,432,502 Shares of beneficial interest redeemed 3,385,025 Distribution and service plan fees 913,276 Shareholder communications 68,432 Trustees' compensation 26,421 Transfer and shareholder servicing agent fees 1,765 Other 33,448 ----------------- Total liabilities 553,500,735 - -------------------------------------------------------------------------------------------- NET ASSETS $ 2,111,059,265 ================= - -------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - -------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 99,195 - -------------------------------------------------------------------------------------------- Additional paid-in capital 2,095,955,679 - -------------------------------------------------------------------------------------------- Accumulated net investment income 11,971,425 - -------------------------------------------------------------------------------------------- Accumulated net realized loss on investments (163,480,144) - -------------------------------------------------------------------------------------------- Net unrealized appreciation on investments 166,513,110 ----------------- NET ASSETS $ 2,111,059,265 ================= - -------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - -------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $727,358,607 and 33,989,923 shares of beneficial interest outstanding) $ 21.40 - -------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $1,383,700,658 and 65,205,021 shares of beneficial interest outstanding) $ 21.22
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F10 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2008 - ---------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------- INVESTMENT INCOME - ---------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $906) $ 20,243,859 Affiliated companies 224,107 - ---------------------------------------------------------------------------------------- Portfolio lending fees 453,430 - ---------------------------------------------------------------------------------------- Interest 7,575 --------------- Total investment income 20,928,971 - ---------------------------------------------------------------------------------------- EXPENSES - ---------------------------------------------------------------------------------------- Management fees 7,010,443 - ---------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 1,765,899 - ---------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,935 Service shares 4,876 - ---------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 14,860 Service shares 26,175 - ---------------------------------------------------------------------------------------- Trustees' compensation 22,976 - ---------------------------------------------------------------------------------------- Custodian fees and expenses 6,287 - ---------------------------------------------------------------------------------------- Administration service fees 750 - ---------------------------------------------------------------------------------------- Other 42,951 --------------- Total expenses 8,900,152 Less reduction to custodian expenses (857) Less waivers and reimbursements of expenses (5,972) --------------- Net expenses 8,893,323 - ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME 12,035,648 - ---------------------------------------------------------------------------------------- REALIZED AND UNREALIZED LOSS - ---------------------------------------------------------------------------------------- Net realized loss on investments from unaffiliated companies (149,247,129) - ---------------------------------------------------------------------------------------- Net change in unrealized appreciation on investments (89,542,685) - ---------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(226,754,166) ===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F11 | OPPENHEIMER MAIN STREET FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------ OPERATIONS - ------------------------------------------------------------------------------------------------------------------ Net investment income $ 12,035,648 $ 26,378,059 - ------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) (149,247,129) 194,658,587 - ------------------------------------------------------------------------------------------------------------------ Net change in unrealized appreciation (89,542,685) (129,622,213) ------------------------------------ Net increase (decrease) in net assets resulting from operations (226,754,166) 91,414,433 - ------------------------------------------------------------------------------------------------------------------ DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------------------------ Dividends from net investment income: Non-Service shares (10,725,797) (10,356,753) Service shares (15,635,174) (9,852,371) ------------------------------------ (26,360,971) (20,209,124) - ------------------------------------------------------------------------------------------------------------------ Distributions from net realized gain: Non-Service shares (46,604,473) -- Service shares (82,181,746) -- ------------------------------------ (128,786,219) -- - ------------------------------------------------------------------------------------------------------------------ BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (38,049,740) (175,658,859) Service shares 158,593,581 331,431,603 ------------------------------------ 120,543,841 155,772,744 - ------------------------------------------------------------------------------------------------------------------ NET ASSETS - ------------------------------------------------------------------------------------------------------------------ Total increase (decrease) (261,357,515) 226,978,053 - ------------------------------------------------------------------------------------------------------------------ Beginning of period 2,372,416,780 2,145,438,727 ------------------------------------ End of period (including accumulated net investment income of $11,971,425 and $26,296,748, respectively) $ 2,111,059,265 $ 2,372,416,780 ====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F12 | OPPENHEIMER MAIN STREET FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 25.61 $ 24.78 $ 21.79 $ 20.84 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .14 1 .33 1 .27 1 .26 1 Net realized and unrealized gain (loss) (2.65) .75 2.98 .97 ---------------------------------------------------------------------------- Total from investment operations (2.51) 1.08 3.25 1.23 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.32) (.25) (.26) (.28) Distributions from net realized gain (1.38) -- -- -- ---------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.70) -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 21.40 $ 25.61 $ 24.78 $ 21.79 ============================================================================ - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (9.56)% 4.43% 15.03% 5.98% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 727,358 $ 907,727 $ 1,046,146 $ 1,121,476 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 788,190 $ 1,006,655 $ 1,054,522 $ 1,156,299 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.26% 1.28% 1.19% 1.26% Total expenses 0.65% 4,5,6 0.65% 4,5,6 0.66% 4,5 0.67% 6 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 84% 111% 100% 88% YEAR ENDED DECEMBER 31, NON-SERVICE SHARES 2004 2003 - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - --------------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.20 $ 15.32 - --------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .27 1 .18 Net realized and unrealized gain (loss) 1.53 3.86 -------------------------------- Total from investment operations 1.80 4.04 - --------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.16) (.16) Distributions from net realized gain -- -- -------------------------------- Total dividends and/or distributions to shareholders -- -- - --------------------------------------------------------------------------------------- Net asset value, end of period $ 20.84 $ 19.20 ================================ - --------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 9.46% 26.72% - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 1,238,948 $ 1,214,960 - --------------------------------------------------------------------------------------- Average net assets (in thousands) $ 1,216,081 $ 1,003,396 - --------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.39% 1.10% Total expenses 0.67% 6 0.70% 6 - --------------------------------------------------------------------------------------- Portfolio turnover rate 82% 85%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.65% Year Ended December 31, 2007 0.65% Year Ended December 31, 2006 0.66%
5. Waiver or reimbursement of indirect management fees less than 0.005%. 6. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F13 | OPPENHEIMER MAIN STREET FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 25.38 $ 24.58 $ 21.63 $ 20.70 - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .11 1 .26 1 .22 1 .21 1 Net realized and unrealized gain (loss) (2.63) .75 2.95 .96 -------------------------------------------------------------------------- Total from investment operations (2.52) 1.01 3.17 1.17 - --------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.26) (.21) (.22) (.24) Distributions from net realized gain (1.38) -- -- -- -------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.64) -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 21.22 $ 25.38 $ 24.58 $ 21.63 ========================================================================== - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (9.68)% 4.15% 14.76% 5.74% - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 1,383,701 $ 1,464,690 $ 1,099,293 $ 598,348 - --------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 1,420,066 $ 1,315,488 $ 810,181 $ 462,272 - --------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.00% 1.03% 0.95% 1.02% Total expenses 0.90% 4,5,6 0.90% 4,5,6 0.91% 4,5 0.91% 6 - --------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 84% 111% 100% 88% YEAR ENDED DECEMBER 31, SERVICE SHARES 2004 2003 - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.10 $ 15.26 - ----------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .25 1 .14 Net realized and unrealized gain (loss) 1.49 3.85 ---------------------------- Total from investment operations 1.74 3.99 - ----------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.14) (.15) Distributions from net realized gain -- -- ---------------------------- Total dividends and/or distributions to shareholders -- -- - ----------------------------------------------------------------------------------- Net asset value, end of period $ 20.70 $ 19.10 ============================ - ----------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 9.15% 26.44% - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 372,845 $ 166,717 - ----------------------------------------------------------------------------------- Average net assets (in thousands) $ 262,660 $ 98,210 - ----------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.30% 0.83% Total expenses 0.92% 6 0.96% 6 - ----------------------------------------------------------------------------------- Portfolio turnover rate 82% 85%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.90% Year Ended December 31, 2007 0.90% Year Ended December 31, 2006 0.91%
5. Waiver or reimbursement of indirect management fees less than 0.005%. 6. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F14 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Main Street Fund/VA (the "Fund"), is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek high total return. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F15 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- CONCENTRATION OF RISKS. The Fund from time to time may have elements of concentration risk due to the value of certain securities held compared to the overall net investments value of the Fund. Such concentrations may subject the Fund to additional risks. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENTS IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the collateral is required to be sufficient to cover payments of interest and F16 | OPPENHEIMER MAIN STREET FUND/VA principal. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund utilized $51,195,980 of capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October foreign currency losses of $78. As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $149,247,207 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 2,462,318,069 =============== Gross unrealized appreciation $ 259,623,723 Gross unrealized depreciation (114,062,954) --------------- Net unrealized appreciation $ 145,560,769 ===============
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. F17 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 2,149,874 $ 47,110,103 2,948,386 $ 76,016,214 Dividends and/or distributions reinvested 2,774,941 57,330,270 425,853 10,356,753 Redeemed (6,373,760) (142,490,113) (10,151,162) (262,031,826) ------------------------------------------------------------------------------- Net decrease (1,448,945) $ (38,049,740) (6,776,923) $ (175,658,859) =============================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 6,154,725 $ 136,048,949 18,707,352 $ 478,137,931 Dividends and/or distributions reinvested 4,768,240 97,748,917 407,708 9,846,137 Redeemed (3,419,388) (75,204,285) (6,139,866) (156,552,465) ------------------------------------------------------------------------------- Net increase 7,503,577 $ 158,593,581 12,975,194 $ 331,431,603 ===============================================================================
F18 | OPPENHEIMER MAIN STREET FUND/VA - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES -------------------------------------------------------------------- Investment securities $ 1,857,916,919 $ 1,865,578,116
- ---------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ------------------------------------------ Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,843 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $5,972 for IMMF management fees. - -------------------------------------------------------------------------------- 5. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. F19 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of June 30, 2008, the Fund had on loan securities valued at $487,401,609. Collateral of $499,736,349 was received for the loans, all of which was received in cash and subsequently invested in approved instruments or held as cash. - -------------------------------------------------------------------------------- 7. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F20 | OPPENHEIMER MAIN STREET FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER MAIN STREET FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Balanced Fund/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMER FUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ----------------------------------------------------------------------------------- Non-Service Shares $ 1,000.00 $ 931.20 $ 3.22 - ----------------------------------------------------------------------------------- Service Shares 1,000.00 929.90 4.42 HYPOTHETICAL (5% return before expenses) - ----------------------------------------------------------------------------------- Non-Service Shares 1,000.00 1,021.53 3.37 - ----------------------------------------------------------------------------------- Service Shares 1,000.00 1,020.29 4.63
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - -------------------------------------------------------- Non-Service shares 0.67% - -------------------------------------------------------- Service shares 0.92
The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPENHEIMER BALANCED FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- COMMON STOCKS--51.1% - ----------------------------------------------------------------------------- CONSUMER DISCRETIONARY--4.5% - ----------------------------------------------------------------------------- MEDIA--4.5% Liberty Global, Inc., Series A 1 312,718 $ 9,828,727 - ----------------------------------------------------------------------------- Liberty Global, Inc., Series C 1 317,090 9,626,852 -------------- 19,455,579 - ----------------------------------------------------------------------------- CONSUMER STAPLES--5.9% - ----------------------------------------------------------------------------- BEVERAGES--0.4% InBev NV 26,500 1,831,716 - ----------------------------------------------------------------------------- FOOD PRODUCTS--1.3% ConAgra Foods, Inc. 66,500 1,282,120 - ----------------------------------------------------------------------------- Nestle SA 94,660 4,277,329 -------------- 5,559,449 - ----------------------------------------------------------------------------- TOBACCO--4.2% Altria Group, Inc. 162,830 3,347,785 - ----------------------------------------------------------------------------- Lorillard, Inc. 96,140 6,649,042 - ----------------------------------------------------------------------------- Philip Morris International, Inc. 162,830 8,042,174 -------------- 18,039,001 - ----------------------------------------------------------------------------- ENERGY--4.4% - ----------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--4.4% Alpha Natural Resources, Inc. 1 17,200 1,793,788 - ----------------------------------------------------------------------------- BP plc, ADR 41,820 2,909,417 - ----------------------------------------------------------------------------- Exxon Mobil Corp. 115,610 10,188,709 - ----------------------------------------------------------------------------- Petroleo Brasileiro SA, ADR 56,600 4,008,978 -------------- 18,900,892 - ----------------------------------------------------------------------------- FINANCIALS--3.9% - ----------------------------------------------------------------------------- CAPITAL MARKETS--1.4% Credit Suisse Group AG, ADR 133,800 6,062,478 - ----------------------------------------------------------------------------- CONSUMER FINANCE--0.8% American Express Co. 88,900 3,348,863 - ----------------------------------------------------------------------------- INSURANCE--1.7% Everest Re Group Ltd. 73,780 5,881,004 - ----------------------------------------------------------------------------- National Financial Partners Corp. 68,700 1,361,634 -------------- 7,242,638 - ----------------------------------------------------------------------------- HEALTH CARE--6.6% - ----------------------------------------------------------------------------- BIOTECHNOLOGY--1.2% Amicus Therapeutics, Inc. 1 101,200 1,080,816 - ----------------------------------------------------------------------------- deCODE genetics, Inc. 1 193,500 178,020 - ----------------------------------------------------------------------------- Human Genome Sciences, Inc. 1 243,900 1,270,719 - ----------------------------------------------------------------------------- Orexigen Therapeutics, Inc. 1 160,230 1,264,215 - ----------------------------------------------------------------------------- Theravance, Inc. 1 58,800 697,956 - ----------------------------------------------------------------------------- Vanda Pharmaceuticals, Inc. 1 255,000 838,950 -------------- 5,330,676 - ----------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--0.5% Beckman Coulter, Inc. 34,630 2,338,564 - ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--1.7% Medco Health Solutions, Inc. 1 57,500 2,714,000 - ----------------------------------------------------------------------------- Skilled Healthcare Group, Inc., Cl. A 1 125,900 1,689,578 - ----------------------------------------------------------------------------- WellPoint, Inc. 1 56,400 2,688,024 -------------- 7,091,602 - ----------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--0.5% Waters Corp. 1 30,900 1,993,050 - ----------------------------------------------------------------------------- PHARMACEUTICALS--2.7% Abbott Laboratories 52,200 2,765,034 - ----------------------------------------------------------------------------- Medicines Co. (The) 1 170,770 3,384,661 - ----------------------------------------------------------------------------- Mylan, Inc. 213,600 2,578,152 - ----------------------------------------------------------------------------- Schering-Plough Corp. 140,600 2,768,414 -------------- 11,496,261 - ----------------------------------------------------------------------------- INDUSTRIALS--5.5% - ----------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.1% Orbital Sciences Corp. 1 68,424 1,612,069 - ----------------------------------------------------------------------------- United Technologies Corp. 53,240 3,284,908 -------------- 4,896,977 - ----------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.2% Sinomem Technology Ltd. 1,597,000 751,226 - ----------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--2.1% Siemens AG, Sponsored ADR 80,700 8,887,491 - ----------------------------------------------------------------------------- MACHINERY--1.7% Navistar International Corp. 1 112,700 7,417,914 - ----------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.4% Aircastle Ltd. 222,000 1,867,020 - ----------------------------------------------------------------------------- INFORMATION TECHNOLOGY--16.6% - ----------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--0.8% Cisco Systems, Inc. 1 143,550 3,338,973 - ----------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--1.0% International Business Machines Corp. 36,410 4,315,677 - ----------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--0.0% CalAmp Corp. 1 19 39 - ----------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.6% eBay, Inc. 1 113,490 3,101,682 - ----------------------------------------------------------------------------- Google, Inc., Cl. A 1 3,100 1,631,902 - ----------------------------------------------------------------------------- Yahoo!, Inc. 1 106,220 2,194,505 -------------- 6,928,089 - ----------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.3% Lam Research Corp. 1 59,800 2,161,770 - ----------------------------------------------------------------------------- Texas Instruments, Inc. 125,030 3,520,845 -------------- 5,682,615
F1 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------------- SOFTWARE--11.9% Microsoft Corp. 305,600 $ 8,407,056 - ------------------------------------------------------------------------------- Novell, Inc. 1 364,440 2,146,552 - ------------------------------------------------------------------------------- Synopsys, Inc. 1 191,020 4,567,288 - ------------------------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 1,088,950 27,844,452 - ------------------------------------------------------------------------------- THQ, Inc. 1 408,700 8,280,262 -------------- 51,245,610 - ------------------------------------------------------------------------------- MATERIALS--1.4% - ------------------------------------------------------------------------------- CHEMICALS--0.5% Lubrizol Corp. (The) 47,600 2,205,308 - ------------------------------------------------------------------------------- METALS & MINING--0.9% Carpenter Technology Corp. 37,400 1,632,510 - ------------------------------------------------------------------------------- Teck Cominco Ltd., Cl. B 48,700 2,348,317 -------------- 3,980,827 - ------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--1.4% - ------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--0.9% AT&T, Inc. 114,000 3,840,660 - ------------------------------------------------------------------------------- XO Holdings, Inc. 1 85 35 -------------- 3,840,695 - ------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.5% Sprint Nextel Corp. 231,300 2,197,350 - ------------------------------------------------------------------------------- UTILITIES--0.9% - ------------------------------------------------------------------------------- ENERGY TRADERS--0.9% AES Corp. (The) 1 138,300 2,656,743 - ------------------------------------------------------------------------------- Dynegy, Inc., Cl. A 1 163,600 1,398,780 -------------- 4,055,523 -------------- Total Common Stocks (Cost $ 187,613,043) 220,302,103 - ------------------------------------------------------------------------------- PREFERRED STOCKS--1.6% - ------------------------------------------------------------------------------- Companhia Vale do Rio Doce, Sponsored ADR 112,240 3,349,242 - ------------------------------------------------------------------------------- Petroleo Brasileiro SA, Preference 129,980 3,747,536 -------------- Total Preferred Stocks (Cost $ 554,010) 7,096,778 UNITS - ------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - ------------------------------------------------------------------------------- XO Communications, Inc.: Series A Wts., Strike Price $6.25, Exp. 1/16/10 1 171 5 Series B Wts., Strike Price $7.50, Exp. 1/16/10 1,2 128 1 Series C Wts., Strike Price $10, Exp. 1/16/10 1,2 128 1 -------------- Total Rights,Warrants and Certificates (Cost $0) 7
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--2.1% - ------------------------------------------------------------------------------- Argent Securities Trust 2004-W8, Asset-Backed Pass-Through Certificates, Series 2004-W8, Cl. A2, 2.963%, 5/25/34 3 $ 830,484 $ 740,708 - ------------------------------------------------------------------------------- Capital One Prime Auto Receivables Trust, Automobile Asset-Backed Certificates, Series 2005-1, Cl. A4, 2.491%, 4/15/11 3 2,096,816 2,092,056 - ------------------------------------------------------------------------------- Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15 180,000 157,123 - ------------------------------------------------------------------------------- Countrywide Home Loans, Asset-Backed Certificates: Series 2002-4, Cl. A1, 3.223%, 2/25/33 3 18,836 15,930 Series 2005-11, Cl. AF2, 4.657%, 2/25/36 238,221 237,925 Series 2005-16, Cl. 2AF2, 5.382%, 5/25/36 3 360,000 313,534 Series 2005-17, Cl. 1AF2, 5.363%, 5/25/36 3 240,000 218,608 - ------------------------------------------------------------------------------- CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 2.603%, 12/25/29 3 480,000 429,212 - ------------------------------------------------------------------------------- Honda Auto Receivables Owner Trust, Automobile Receivable Obligations, Series 2005-2, Cl. A4, 4.15%, 10/15/10 314,218 315,211 - ------------------------------------------------------------------------------- HSBC Home Equity Loan Trust 2005-3, Closed-End Home Equity Loan Asset-Backed Nts., Series 2005-3, Cl. A1, 2.742%, 1/20/35 3 317,240 293,904 - ------------------------------------------------------------------------------- HSBC Home Equity Loan Trust 2006-4, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2006-4, Cl. A2V, 2.592%, 3/20/36 3 180,000 172,128 - ------------------------------------------------------------------------------- Lehman XS Trust, Mtg. Pass-Through Certificates, Series 2005-2, Cl. 2A1B, 5.18%, 8/25/35 3 200,171 200,988 - ------------------------------------------------------------------------------- MBNA Credit Card Master Note Trust, Credit Card Receivables, Series 2003-C7, Cl. C7, 3.821%, 3/15/16 3 1,710,000 1,506,542 - ------------------------------------------------------------------------------- Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2006-2, Cl. 2A2, 2.583%, 7/1/36 3 1,100,000 1,058,272 - ------------------------------------------------------------------------------- RASC Series 2006-KS7 Trust, Home Equity Mtg. Asset-Backed Pass-Through Certificates, Series 2006-KS7, Cl. A2, 2.583%, 9/25/36 3 800,000 773,989 - ------------------------------------------------------------------------------- Structured Asset Investment Loan Trust, Mtg. Pass-Through Certificates, Series 2006-BNC3, Cl. A2, 2.523%, 9/25/36 3 332,930 327,880 -------------- Total Asset-Backed Securities (Cost $ 9,460,459) 8,854,010
F2 | OPPENHEIMER BALANCED FUND/VA
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS--40.2% - -------------------------------------------------------------------------------- GOVERNMENT AGENCY--25.2% - -------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED--25.1% Federal Home Loan Mortgage Corp.: 4.50%, 5/15/19-7/15/19 $ 1,708,348 $ 1,666,386 5%, 12/15/32-12/15/34 3,037,405 2,930,161 6%, 3/15/33 267,813 272,369 6.50%, 4/15/18-4/1/34 2,413,270 2,513,363 7%, 12/1/23-10/1/31 1,057,421 1,117,965 - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 2006-11, Cl. PS, 15.464%, 3/25/36 3 337,447 368,109 Series 2043, Cl. ZP, 6.50%, 4/15/28 548,457 574,900 Series 2055, Cl. ZM, 6.50%, 5/15/28 302,634 314,809 Series 2075, Cl. D, 6.50%, 8/15/28 739,721 777,123 Series 2080, Cl. Z, 6.50%, 8/15/28 198,860 208,885 Series 2461, Cl. PZ, 6.50%, 6/15/32 767,222 814,989 Series 2500, Cl. FD, 2.971%, 3/15/32 3 94,509 93,934 Series 2526, Cl. FE, 2.871%, 6/15/29 3 138,519 137,880 Series 2538, Cl. F, 3.071%, 12/15/32 3 1,462,257 1,467,506 Series 2551, Cl. FD, 2.871%, 1/15/33 3 105,835 105,197 Series 2676, Cl. KY, 5%, 9/15/23 298,000 290,656 Series 3025, Cl. SJ, 15.689%, 8/15/35 3 109,587 120,968 Series 3094, Cl. HS, 15.322%, 6/15/34 3 209,772 226,662 - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 176, Cl. IO, 14.692%, 6/1/26 4 182,112 48,584 Series 183, Cl. IO, 13.67%, 4/1/27 4 298,324 66,840 Series 184, Cl. IO, 19.512%, 12/1/26 4 321,795 85,694 Series 192, Cl. IO, 14.783%, 2/1/28 4 87,733 22,672 Series 200, Cl. IO, 14.589%, 1/1/29 4 108,125 28,880 Series 2130, Cl. SC, 28.009%, 3/15/29 4 228,246 23,454 Series 216, Cl. IO, 13.426%, 12/1/31 4 170,142 48,485 Series 224, Cl. IO, 10.259%, 3/1/33 4 540,324 143,409 Series 243, Cl. 6, 8.293%, 12/15/32 4 324,922 96,532 Series 2796, Cl. SD, 38.743%, 7/15/26 4 330,568 31,450 Series 2802, Cl. AS, 75%, 4/15/33 4 493,409 37,643 Series 2920, Cl. S, 44.531%, 1/15/35 4 1,846,280 168,209 Series 3000, Cl. SE, 75.896%, 7/15/25 4 1,908,384 128,954 Series 3110, Cl. SL, 99.999%, 2/15/26 4 279,036 19,628 - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security: Series 176, Cl. PO, 4.256%, 6/1/26 5 80,146 64,554 Series 192, Cl. PO, 5.893%, 2/1/28 5 87,733 68,465 - -------------------------------------------------------------------------------- Federal National Mortgage Assn.: 4.50%, 8/1/20 528,568 517,072 4.50%, 7/1/22 6 7,720,000 7,461,859 5%, 12/25/17-9/25/35 12,354,534 12,216,761 5%, 7/1/38 6 5,456,000 5,230,089 5%, 12/1/17 7 2,806,782 2,804,560 5.50%, 9/25/20-9/1/36 4,450,061 4,414,210 5.50%, 7/1/22-7/1/37 6 19,989,000 19,737,440 6%, 8/25/32-8/1/34 9,387,616 9,535,143 6%, 7/1/22 6 4,324,000 4,432,775 6.50%, 6/25/17-10/25/30 1,946,099 2,029,524 6.50%, 12/25/29 7 2,500,078 2,601,986 7%, 11/1/17-11/25/35 2,367,184 2,504,022 7.50%, 1/1/33 322,401 348,281 8.50%, 7/1/32 13,147 14,483 - -------------------------------------------------------------------------------- Federal National Mortgage Assn. Grantor Trust, Gtd. Trust Mtg. Pass-Through Certificates, Trust 2002-T1, Cl. A2, 7%, 11/25/31 643,154 682,045 - -------------------------------------------------------------------------------- Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Trust 1993-215, Cl. ZQ, 6.50%, 11/25/23 619,288 644,291 Trust 1993-87, Cl. Z, 6.50%, 6/25/23 562,198 583,190 Trust 1998-61, Cl. PL, 6%, 11/25/28 293,883 302,505 Trust 2001-51, Cl. OD, 6.50%, 10/25/31 775,219 815,683 Trust 2001-70, Cl. LR, 6%, 9/25/30 32,235 32,411 Trust 2001-82, Cl. ZA, 6.50%, 1/25/32 275,312 287,986 Trust 2002-9, Cl. PC, 6%, 3/25/17 622,559 647,609 Trust 2003-130, Cl. CS, 9.135%, 12/25/33 3 187,852 181,325 Trust 2003-28, Cl. KG, 5.50%, 4/25/23 1,052,000 1,053,782 Trust 2003-84, Cl. PW, 3%, 6/25/22 8,305 8,286 Trust 2004-101, Cl. BG, 5%, 1/25/20 1,110,000 1,108,659 Trust 2005-59, Cl. NQ, 10.669%, 5/25/35 3 344,825 332,841 Trust 2006-24, Cl. DB, 5.50%, 4/25/26 1,000,000 985,878 Trust 2006-46, Cl. SW, 15.097%, 6/25/36 3 250,848 268,965 Trust 2006-50, Cl. KS, 15.098%, 6/25/36 3 656,262 687,496 Trust 2006-50, Cl. SK, 15.098%, 6/25/36 3 618,959 647,739 Trust 2006-64, Cl. MD, 5.50%, 7/25/36 2,983,000 2,930,394 - -------------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-65, Cl. S, 40.719%, 11/25/31 4 868,225 115,029 Trust 2001-81, Cl. S, 26.301%, 1/25/32 4 184,770 23,302 Trust 2002-47, Cl. NS, 24.932%, 4/25/32 4 410,004 49,380 Trust 2002-51, Cl. S, 25.185%, 8/25/32 4 376,481 45,513 Trust 2002-52, Cl. SD, 23.271%, 9/25/32 4 418,700 48,421 Trust 2002-77, Cl. SH, 29.756%, 12/18/32 4 251,900 26,141 Trust 2002-84, Cl. SA, 42.033%, 12/25/32 4 767,628 98,190 Trust 2002-9, Cl. MS, 25.626%, 3/25/32 4 276,995 34,124 Trust 2003-118, Cl. S, 38.174%, 12/25/33 4 1,631,843 249,471 Trust 2003-33, Cl. SP, 42.825%, 5/25/33 4 857,771 125,406 Trust 2003-4, Cl. S, 39.247%, 2/25/33 4 495,819 75,758 Trust 2003-46, Cl. IH, 2.206%, 6/1/33 4 2,885,661 645,269 Trust 2004-54, Cl. DS, 28.703%, 11/25/30 4 361,350 31,011 Trust 2005-19, Cl. SA, 42.104%, 3/25/35 4 4,844,541 356,093 Trust 2005-40, Cl. SA, 41.56%, 5/25/35 4 1,010,038 80,760 Trust 2005-6, Cl. SE, 50.176%, 2/25/35 4 1,339,415 105,558 Trust 2005-71, Cl. SA, 52.92%, 8/25/25 4 1,190,523 106,330 Trust 2005-87, Cl. SE, 99.999%, 10/25/35 4 2,421,789 161,195 Trust 2005-87, Cl. SG, 79.289%, 10/25/35 4 2,407,695 233,437 Trust 2006-33, Cl. SP, 60.942%, 5/25/36 4 2,677,221 300,403
F3 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued Trust 222, Cl. 2, 19.006%, 6/1/23 4 $ 679,811 $ 185,604 Trust 233, Cl. 2, 17.54%, 8/1/23 4 569,974 127,909 Trust 240, Cl. 2, 23.618%, 9/1/23 4 1,080,863 308,098 Trust 252, Cl. 2, 18.294%, 11/1/23 4 505,732 143,541 Trust 273, Cl. 2, 17.433%, 8/1/26 4 143,178 39,218 Trust 319, Cl. 2, 13.24%, 2/1/32 4 185,029 47,932 Trust 321, Cl. 2, 8.622%, 4/1/32 4 1,926,873 495,925 Trust 331, Cl. 9, 15.505%, 2/1/33 4 525,197 116,409 Trust 334, Cl. 17, 22.286%, 2/1/33 4 301,181 77,589 Trust 339, Cl. 12, 7.81%, 7/1/33 4 534,761 135,064 Trust 339, Cl. 7, 5.583%, 7/1/33 4 2,029,052 476,532 Trust 342, Cl. 2, 14.101%, 9/1/33 4 217,578 58,528 Trust 343, Cl. 13, 8.358%, 9/1/33 4 433,241 108,961 Trust 344, Cl. 2, 11.128%, 12/1/33 4 3,703,405 997,335 Trust 345, Cl. 9, 8.72%, 1/1/34 4 746,419 186,451 Trust 362, Cl. 12, 7.296%, 8/1/35 4 1,256,116 296,785 Trust 362, Cl. 13, 7.243%, 8/1/35 4 695,879 164,449 Trust 364, Cl. 16, 9.622%, 9/1/35 4 548,975 137,062 - ---------------------------------------------------------------------------- Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 1993-184, Cl. M, 4.816%, 9/25/23 5 238,061 191,147 -------------- 108,339,935 - ---------------------------------------------------------------------------- GNMA/GUARANTEED--0.1% Government National Mortgage Assn., 8%, 4/15/23 137,223 150,050 - ---------------------------------------------------------------------------- Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 2001-21, Cl. SB, 42.233%, 1/16/27 4 385,694 35,926 Series 2002-15, Cl. SM, 36.868%, 2/16/32 4 461,033 42,373 Series 2002-76, Cl. SY, 38.492%, 12/16/26 4 955,880 95,323 Series 2004-11, Cl. SM, 23.293%, 1/17/30 4 306,123 33,432 -------------- 357,104 - ---------------------------------------------------------------------------- NON-AGENCY--15.0% - ---------------------------------------------------------------------------- COMMERCIAL--5.5% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2006-1, Cl. AM, 5.421%, 9/1/45 1,800,000 1,650,048 - ---------------------------------------------------------------------------- Banc of America Funding Corp., Mtg. Pass-Through Certificates, Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 551,961 553,272 - ---------------------------------------------------------------------------- Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-8, Cl. 5A1, 6.50%, 5/25/32 463,429 472,634 - ---------------------------------------------------------------------------- ChaseFlex Trust 2006-2, Multiclass Mtg. Pass-Through Certificates, Series 2006-2, Cl. A1B, 2.493%, 8/25/08 3 168,533 164,413 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2006-WF1, Asset-Backed Pass-Through Certificates, Series 2006-WF1, Cl. A2B, 5.536%, 3/1/36 $ 123,328 123,292 - ---------------------------------------------------------------------------- Citigroup/Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. A2B, 5.205%, 12/11/49 570,000 555,153 - ---------------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2006-A5, Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 2006-A5, Cl. 1A1, 2.883%, 10/25/36 3 1,407,409 1,200,341 Series 2006-A5, Cl. 1A13, 2.933%, 10/25/36 3 741,949 620,070 - ---------------------------------------------------------------------------- CWALT Alternative Loan Trust 2006-HY13, Mtg. Pass-Through Certificates, Series 2006-HY13, Cl. 3A1, 5.978%, 1/1/47 3 166,738 157,880 - ---------------------------------------------------------------------------- Deutsche Alt-A Securities Mortgage Loan Trust, Mtg. Pass-Through Certificates: Series 2006-AB2, Cl. A7, 5.961%, 6/25/36 298,187 295,509 Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 808,873 796,648 Series 2006-AB3, Cl. A7, 6.36%, 7/1/36 98,840 97,258 - ---------------------------------------------------------------------------- First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35 380,683 337,033 - ---------------------------------------------------------------------------- First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 460,103 444,885 - ---------------------------------------------------------------------------- Greenwich Capital Commercial Mortgage 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. A4, 5.736%, 8/1/17 790,000 748,426 - ---------------------------------------------------------------------------- JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2005-LDP4, Cl. AM, 4.999%, 10/1/42 450,000 420,325 Series 2007-LDPX, Cl. A2S, 5.305%, 1/15/49 1,660,000 1,617,512 Series 2007-LD12, Cl. A2, 5.827%, 2/15/51 510,000 504,084 Series 2008-C2, Cl. A4, 6.068%, 2/1/51 1,650,000 1,655,165
F4 | OPPENHEIMER BALANCED FUND/VA
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- COMMERCIAL Continued LB-UBS Commercial Mortgage Trust 2005-C7, Commercial Mtg. Pass-Through Certificates, Series 2005-C7, Cl. A2, 5.103%, 11/11/30 $ 340,000 $ 339,381 - --------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates: Series 2006-C1, Cl. A2, 5.084%, 2/11/31 1,010,000 1,001,464 Series 2006-C1, Cl. AM, 5.217%, 2/11/31 3 1,010,000 914,337 - --------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2007-C1, Commercial Mtg. Pass-Through Certificates, Series 2007-C1, Cl. A2, 5.318%, 1/15/12 910,000 890,623 - --------------------------------------------------------------------------- Mastr Alternative Loan Trust, CMO Pass-Through Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34 783,937 714,620 - --------------------------------------------------------------------------- Merrill Lynch/Countrywide Commercial Mortgage Trust 2007-9, Commercial Mtg. Pass-Through Certificates, Series 2007-9, Cl. A4, 5.70%, 9/1/17 1,450,000 1,370,144 - --------------------------------------------------------------------------- Nomura Asset Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 1998-D6, Cl. A1B, 6.59%, 3/15/30 17,726 17,810 - --------------------------------------------------------------------------- Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 983,000 1,032,149 - --------------------------------------------------------------------------- RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A114, 5.75%, 4/25/37 658,892 631,720 - --------------------------------------------------------------------------- Residential Asset Securitization Trust 2006-A9CB, Mtg. Pass-Through Certificates, Series 2006-A9CB, Cl. A5, 6%, 9/25/36 867,477 858,739 - --------------------------------------------------------------------------- STARM Mortgage Loan Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.658%, 6/1/37 3 1,219,949 1,143,893 - --------------------------------------------------------------------------- Wachovia Bank Commercial Mortgage Trust 2006-C29, Commercial Mtg. Pass-Through Certificates, Series 2006-C29, Cl. A2, 5.272%, 11/15/48 256,000 251,957 - --------------------------------------------------------------------------- Wachovia Mortgage Loan Trust LLC, Mtg. Pass-Through Certificates, Series 2007-A, Cl. 1A1, 5.996%, 3/1/37 3 283,982 280,260 - --------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A2, 5.714%, 2/25/37 2,3 356,098 195,854 - --------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY3 Trust, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 2A2, 5.665%, 3/1/37 3 907,763 660,083 - --------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY4 Trust, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 5A1, 5.636%, 11/1/36 3 234,518 223,290 - --------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 2A3, 5.658%, 5/1/37 3 239,206 223,233 - --------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A2, 4.013%, 12/1/34 3 474,951 468,771 - --------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-U Trust, Mtg. Pass-Through Certificates, Series 2004-U, Cl. A1, 6.313%, 10/1/34 3 83,423 83,233 ------------ 23,715,509 - --------------------------------------------------------------------------- MANUFACTURED HOUSING--0.8% Wells Fargo Mortgage-Backed Securities 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 6.099%, 9/25/36 3 1,478,953 1,414,802 - --------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A5, 5.106%, 3/25/36 3 1,791,438 1,736,710 ------------- 3,151,512 - --------------------------------------------------------------------------- MULTIFAMILY--4.1% Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates: Series 2003-E, Cl. 2A2, 4.606%, 6/25/33 3 875,381 873,394 Series 2005-F, Cl. 2A3, 4.713%, 7/25/35 3 1,324,041 1,283,589 - --------------------------------------------------------------------------- Bear Stearns ARM Trust 2006-4, Mtg. Pass-Through Certificates, Series 2006-4, Cl. 2A1, 5.794%, 10/25/36 3 707,704 628,505 - --------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2003-46, Mtg. Pass-Through Certificates, Series 2003-46, Cl. 1A2, 4.13%, 1/19/34 3 858,294 851,508
F5 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ MULTIFAMILY Continued CHL Mortgage Pass-Through Trust 2005-HYB1, Mtg. Pass-Through Certificates, Series 2005-HYB1, Cl. 1A2, 4.995%, 3/25/35 3 $1,225,198 $ 1,163,939 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2007-HY1, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A1, 5.694%, 4/25/37 3 1,721,186 1,607,795 - ------------------------------------------------------------------------------ Citigroup Mortgage Loan Trust, Inc. 2006-AR5, Mtg. Pass-Through Certificates, Series 2006-AR5, Cl. 1 A3A, 5.89%, 7/25/36 3 580,688 563,910 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-28CB, Mtg. Pass-Through Certificates, Series 2004-28CB, Cl. 2A4, 5.75%, 1/25/35 1,166,000 1,002,195 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-85CB, Mtg. Pass-Through Certificates, Series 2005-85CB, Cl. 2A3, 5.50%, 2/25/36 860,000 771,043 - ------------------------------------------------------------------------------ GMAC Mortgage Corp. Loan Trust, Mtg. Pass-Through Certificates: Series 2005-AR4, Cl. 2A1, 5.297%, 7/19/35 3 1,301,667 1,124,561 Series 2004-J4, Cl. A7, 5.50%, 9/25/34 800,000 722,367 - ------------------------------------------------------------------------------ GSR Mortgage Loan Trust 2005-AR7, Mtg. Pass-Through Certificates, Series 2005-AR7, Cl. 3A1, 5.149%, 11/25/35 3 2,090,908 1,996,346 - ------------------------------------------------------------------------------ Merrill Lynch Mortgage Investors Trust 2007-2, Mtg. Pass-Through Certificates, Series 2007-2, Cl. 2A1, 5.995%, 6/25/37 3 1,575,920 1,515,125 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-AA Trust, Mtg. Pass-Through Certificates, Series 2004-AA, Cl. 2A, 4.993%, 12/25/34 3 428,188 416,624 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-S Trust, Mtg. Pass-Through Certificates, Series 2004-S, Cl. A1, 3.541%, 9/25/34 3 359,497 342,362 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2005-AR2 Trust, Mtg. Pass-Through Certificates, Series 2005-AR2, Cl. 2A2, 4.542%, 3/25/35 3 258,334 249,788 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2005-AR4 Trust, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 2A2, 4.526%, 4/25/35 3 430,460 412,301 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR10 Trust, Mtg. Pass-Through Certificates: Series 2006-AR10, Cl. 4A1, 5.561%, 7/25/36 3 881,511 853,946 Series 2006-AR10, Cl. 2A1, 5.646%, 7/25/36 3 670,959 649,819 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A6, 5.106%, 3/25/36 3 346,244 321,485 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 5.092%, 3/25/36 3 386,820 372,739 -------------- 17,723,341 - ------------------------------------------------------------------------------ RESIDENTIAL--4.6% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-4, Cl. A4, 5.936%, 7/1/17 3 820,000 782,526 - ------------------------------------------------------------------------------ Chase Mortgage Finance Trust 2005-S1, Multiclass Mtg. Pass-Through Certificates, Series 2005-S1, Cl. 1A5, 5.50%, 5/25/35 490,000 450,002 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2007-HY4, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 1A1, 6.094%, 9/25/47 3 1,737,299 1,563,569 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-24CB, Mtg. Pass-Through Certificates, Series 2004-24CB, Cl. 1A1, 6%, 11/1/34 686,429 643,723 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-28CB, Mtg. Pass-Through Certificates, Series 2004-28CB, Cl. 3A1, 6%, 1/1/35 557,488 507,514 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-18CB, Mtg. Pass-Through Certificates, Series 2005-18CB, Cl. A8, 5.50%, 5/25/36 1,170,000 999,532 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-J1, Mtg. Pass-Through Certificates, Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 1,059,076 932,793 - ------------------------------------------------------------------------------ LB-UBS Commercial Mortgage Trust 2007-C7, Commercial Mtg. Pass-Through Certificates, Series 2007-C7, Cl. A3, 5.866%, 9/11/45 1,840,000 1,759,264
F6 | OPPENHEIMER BALANCED FUND/VA
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ RESIDENTIAL Continued Morgan Stanley Mortgage Loan Trust 2006-AR, Mtg. Pass-Through Certificates, Series 2006-AR, Cl. 5A3, 5.427%, 6/25/36 3 $ 530,000 $ 499,314 - ------------------------------------------------------------------------------ RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33 327,931 319,264 - ------------------------------------------------------------------------------ RALI Series 2004-QS10 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2004-QS10, Cl. A3, 2.983%, 7/25/34 3 122,152 109,121 - ------------------------------------------------------------------------------ RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 492,914 489,948 - ------------------------------------------------------------------------------ RALI Series 2006-QS5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS5, Cl. 2A2, 6%, 5/1/36 357,913 345,960 - ------------------------------------------------------------------------------ STARM Mortgage Loan Trust 2007-S1, Mtg. Pass-Through Certificates, Series 2007-S1, Cl. 3A1, 5.009%, 8/1/22 3 1,973,944 1,913,091 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2003-AR9 Trust, Mtg. Pass-Through Certificates, Series 2003-AR9, Cl. 2A, 4.046%, 9/25/33 3 613,426 587,272 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 5.75%, 10/25/36 3 1,856,541 1,722,752 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 2A1, 6.13%, 8/25/36 3 1,791,897 1,759,069 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY2 Trust, Mtg. Pass-Through Certificates, Series 2007-HY2, Cl. 2A1, 6.611%, 11/1/36 3 107,779 101,827 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY6 Trust, Mtg. Pass-Through Certificates, Series 2007-HY6, Cl. 2A1, 5.698%, 6/25/37 3 1,221,887 1,134,370 - ------------------------------------------------------------------------------ Washington Mutual Mortgage Pass-Through Certificates, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 1A8, 6%, 2/25/37 1,910,940 1,855,719 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2003-6 Trust, Mtg. Pass-Through Certificates, Series 2003-6, Cl. 1A1, 5%, 6/25/18 688,947 666,385 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A1, 4.013%, 12/1/34 3 200,535 197,926 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 4.365%, 9/1/34 3 101,156 98,488 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR5 Trust, Mtg. Pass-Through Certificates, Series 2006-AR5, Cl. 2A2, 5.54%, 4/1/36 2,3 740,214 488,542 -------------- 19,927,971 -------------- Total Mortgage-Backed Obligations (Cost $ 173,179,370) 173,215,372 - ------------------------------------------------------------------------------ NON-CONVERTIBLE CORPORATE BONDS AND NOTES--12.2% - ------------------------------------------------------------------------------ ABN Amro Bank NV (NY Branch), 7.125% Sub. Nts., Series B, 10/15/93 400,000 390,637 - ------------------------------------------------------------------------------ Albertson's, Inc., 8% Sr. Unsec. Debs., 5/1/31 880,000 906,107 - ------------------------------------------------------------------------------ American International Group, Inc., 6.25% Jr. Sub. Bonds, 3/15/37 105,000 82,587 - ------------------------------------------------------------------------------ Axa SA, 6.379% Sub. Perpetual Bonds 8,9 2,135,000 1,720,639 - ------------------------------------------------------------------------------ Bank of America Corp.: 8% Unsec. Perpetual Bonds, Series K 9 1,345,000 1,263,278 8.125% Perpetual Bonds, Series M 9 225,000 212,965 - ------------------------------------------------------------------------------ Barclays Bank plc, 6.278% Perpetual Bonds 9 2,600,000 2,148,042 - ------------------------------------------------------------------------------ Belo Corp., 8% Sr. Unsec. Unsub. Nts., 11/1/08 2 1,520,000 1,535,103 - ------------------------------------------------------------------------------ Buckeye Partners LP, 4.625% Sr. Nts., 7/15/13 310,000 296,285 - ------------------------------------------------------------------------------ Capmark Financial Group, Inc.: 3.366% Sr. Unsec. Nts., 5/10/10 3 375,000 289,218 5.875% Sr. Unsec. Nts., 5/10/12 585,000 413,123 - ------------------------------------------------------------------------------ Centex Corp., 5.80% Sr. Unsec. Nts., 9/15/09 2 765,000 730,575 - ------------------------------------------------------------------------------ Chancellor Media CCU, 8% Sr. Unsec. Nts., 11/1/08 845,000 857,650 - ------------------------------------------------------------------------------ CIT Group Funding Co. of Canada, 4.65% Sr. Unsec. Nts., 7/1/10 670,000 560,746 - ------------------------------------------------------------------------------
F7 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- NON-CONVERTIBLE CORPORATE BONDS AND NOTES Continued - ---------------------------------------------------------------------------------- Citigroup, Inc.: 8.30% Jr. Sub. Bonds, 12/21/57 3 $ 1,870,000 $ 1,773,731 8.40% Perpetual Bonds, Series E 9 760,000 723,414 - ---------------------------------------------------------------------------------- Clear Channel Communications, Inc., 6.25% Nts., 3/15/11 710,000 602,082 - ---------------------------------------------------------------------------------- Coca-Cola Co. (The), 7.375% Unsec. Debs., 7/29/93 360,000 424,093 - ---------------------------------------------------------------------------------- CSC Holdings, Inc., 7.25% Sr. Unsec. Nts., 7/15/08 845,000 847,113 - ---------------------------------------------------------------------------------- D.R. Horton, Inc., 8% Sr. Nts., 2/1/09 285,000 285,713 - ---------------------------------------------------------------------------------- Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 126,000 148,877 - ---------------------------------------------------------------------------------- Dillard's, Inc., 6.625% Unsec. Nts., 11/15/08 2 445,000 445,556 - ---------------------------------------------------------------------------------- EchoStar DBS Corp., 5.75% Sr. Unsec. Nts., 10/1/08 1,285,000 1,288,213 - ---------------------------------------------------------------------------------- Energy Transfer Partners LP, 5.65% Sr. Unsec. Unsub. Nts., 8/1/12 195,000 196,860 - ---------------------------------------------------------------------------------- Ford Motor Credit Co., 9.75% Sr. Unsec. Nts., 9/15/10 2,030,000 1,771,080 - ---------------------------------------------------------------------------------- Gap, Inc. (The), 10.05% Unsub. Nts., 12/15/08 2,3 141,000 144,349 - ---------------------------------------------------------------------------------- General Motors Acceptance Corp., 8% Bonds, 11/1/31 1,400,000 913,333 - ---------------------------------------------------------------------------------- Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 1,850,000 1,574,637 - ---------------------------------------------------------------------------------- HBOS plc, 6.413% Sub. Perpetual Bonds, Series A 8,9 3,100,000 2,175,115 - ---------------------------------------------------------------------------------- HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35 3 2,530,000 2,032,653 - ---------------------------------------------------------------------------------- Hyundai Motor Manufacturing Alabama LLC, 5.30% Sr. Unsec. Nts., 12/19/08 8 610,000 610,463 - ---------------------------------------------------------------------------------- JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1 9 1,520,000 1,429,454 - ---------------------------------------------------------------------------------- Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13 830,000 800,509 - ---------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc., 7.50% Sub. Nts., 5/11/38 1,990,000 1,853,178 - ---------------------------------------------------------------------------------- Lennar Corp., 7.625% Sr. Unsec. Nts., 3/1/09 1,010,000 984,750 - ---------------------------------------------------------------------------------- Liberty Media Corp., 7.875% Sr. Nts., 7/15/09 290,000 294,315 - ---------------------------------------------------------------------------------- Liberty Media LLC, 7.75% Sr. Nts., 7/15/09 950,000 960,629 - ---------------------------------------------------------------------------------- Macy's Retail Holdings, Inc., 4.80% Sr. Nts., 7/15/09 875,000 857,726 - ---------------------------------------------------------------------------------- MBIA, Inc., 5.70% Sr. Unsec. Unsub. Nts., 12/1/34 565,000 227,605 - ---------------------------------------------------------------------------------- Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38 1,795,000 1,689,316 - ---------------------------------------------------------------------------------- MetLife Capital Trust X, 9.25% Sec. Bonds, 4/8/68 3 300,000 324,488 - ---------------------------------------------------------------------------------- MetLife, Inc., 6.40% Jr. Unsec. Sub. Bonds, 12/15/66 3 1,710,000 1,500,612 - ---------------------------------------------------------------------------------- MGM Mirage, Inc., 6% Sr. Sec. Nts., 10/1/09 1,305,000 1,290,319 - ---------------------------------------------------------------------------------- Monongahela Power Co., 7.36% Unsec. Nts., Series A, 1/15/10 1,030,000 1,056,162 - ---------------------------------------------------------------------------------- NCR Corp., 7.125% Sr. Unsec. Unsub. Nts., 6/15/09 865,000 877,242 - ---------------------------------------------------------------------------------- PF Export Receivables Master Trust, 3.748% Sr. Nts., Series B, 6/1/13 8 268,869 267,359 - ---------------------------------------------------------------------------------- Popular North America, Inc., 4.70% Nts., 6/30/09 1,360,000 1,343,669 - ---------------------------------------------------------------------------------- Prudential Holdings LLC, 8.695% Bonds, Series C, 12/18/23 8 1,285,000 1,497,823 - ---------------------------------------------------------------------------------- Prudential Insurance Co. of America, 8.30% Nts., 7/1/25 8 1,110,000 1,218,117 - ---------------------------------------------------------------------------------- Qwest Corp.: 5.625% Unsec. Nts., 11/15/08 131,000 131,328 8.875% Unsec. Unsub. Nts., 3/15/12 1,720,000 1,763,000 - ---------------------------------------------------------------------------------- R&B Falcon Corp., 9.50% Sr. Unsec. Nts., 12/15/08 500,000 513,739 - ---------------------------------------------------------------------------------- SLM Corp.: 3.95% Nts., Series A, 8/15/08 25,000 24,834 4% Nts., 1/15/09 915,000 903,893 - ---------------------------------------------------------------------------------- TEPPCO Partners LP, 6.125% Nts., 2/1/13 490,000 486,509 - ---------------------------------------------------------------------------------- Tribune Co., 5.50% Nts., Series E, 10/6/08 765,000 751,613 - ---------------------------------------------------------------------------------- Univision Communications, Inc., 3.875% Sr. Unsec. Nts., 10/15/08 315,000 311,850 - ---------------------------------------------------------------------------------- Valero Logistics Operations LP, 6.05% Nts., 3/15/13 210,000 205,331 - ---------------------------------------------------------------------------------- Westar Energy, Inc., 7.125% Sr. Unsec. Nts., 8/1/09 985,000 1,015,848 - ---------------------------------------------------------------------------------- Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625% Nts., 12/1/14 740,000 680,800 -------------- Total Non-Convertible Corporate Bonds and Notes (Cost $ 56,504,635) 52,626,255 - ---------------------------------------------------------------------------------- CONVERTIBLE CORPORATE BONDS AND NOTES--0.2% - ---------------------------------------------------------------------------------- Theravance, Inc., 3% Cv. Sub. Nts., 1/15/15 (Cost $1,486,000) 1,486,000 1,066,205
F8 | OPPENHEIMER BALANCED FUND/VA
SHARES VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- INVESTMENT COMPANY--2.6% - ---------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 10,11 (Cost $ 11,064,442) 11,064,442 $ 11,064,442 - ---------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $ 439,861,959) 110.0% 474,225,172 - ---------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (10.0) (43,165,931) ---------------------------- NET ASSETS 100.0% $431,059,241 ============================
FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $3,539,981, which represents 0.82% of the Fund's net assets. See Note 8 of accompanying Notes. 3. Represents the current interest rate for a variable or increasing rate security. 4. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $8,171,671 or 1.90% of the Fund's net assets as of June 30, 2008. 5. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $324,166 or 0.08% of the Fund's net assets as of June 30, 2008. 6. When-issued security or delayed delivery to be delivered and settled after June 30, 2008. See Note 1 of accompanying Notes. 7. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $3,682,710. See Note 6 of accompanying Notes. 8. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $7,489,516 or 1.74% of the Fund's net assets as of June 30, 2008. 9. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. 10. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ----------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 16,578,809 77,520,248 83,034,615 11,064,442
DIVIDEND VALUE INCOME - ----------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $11,064,442 $ 124,964
11. Rate shown is the 7-day yield as of June 30, 2008. F9 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* -------------------------------------------------------------------------------- Level 1--Quoted Prices $ 236,631,614 $ (82,117) Level 2--Other Significant Observable Inputs 233,536,760 (4,290,244) Level 3--Significant Unobservable Inputs 4,056,798 -- --------------------------------- Total $ 474,225,172 $ (4,372,361) =================================
* Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. - -------------------------------------------------------------------------------- FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
CONTRACT AMOUNT EXPIRATION UNREALIZED CONTRACT DESCRIPTION BUY/SELL (000s) DATE VALUE DEPRECIATION - ------------------------------------------------------------------------------------------------------------------- Canadian Dollar (CAD) Buy 1,867 CAD 7/2/08 $1,831,359 $ 23,841
- -------------------------------------------------------------------------------- FUTURE CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - ---------------------------------------------------------------------------------------------------------------- U.S. Long Bonds Buy 103 9/19/08 $11,906,156 $ 162,174 U.S. Treasury Nts., 2 yr. Sell 296 9/30/08 62,516,125 9,930 U.S. Treasury Nts., 5 yr. Buy 77 9/30/08 8,512,711 (32,864) U.S. Treasury Nts., 10 yr. Sell 322 9/19/08 36,682,844 (70,815) ------------ $ 68,425 ============
F10 | OPPENHEIMER BALANCED FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- Barclays Bank plc: American International Group, Inc. Sell $ 1,875 1.850% 9/20/08 $ -- $ 864 Capmark Financial Group, Inc. Sell 520 1.000 6/20/12 -- (135,752) Countrywide Home Loans, Inc. Sell 675 0.750 9/20/08 -- (8,385) Dillard's, Inc. Sell 370 1.900 12/20/08 -- (3,568) HCP, Inc. Sell 455 4.600 3/20/09 -- 464 iStar Financial, Inc. Sell 480 4.400 12/20/12 -- (39,723) Kohl's Corp. Buy 285 1.180 6/20/18 -- 3,054 Kohl's Corp. Sell 285 1.080 6/20/13 -- (1,521) Kohl's Corp. Sell 285 0.900 6/20/13 -- (3,762) Kohl's Corp. Buy 285 1.040 6/20/18 -- 6,002 Lehman Brothers Holdings, Inc. Sell 1,110 0.490 9/20/10 -- (56,713) Merrill Lynch & Co., Inc. Sell 2,090 0.680 9/20/08 -- 303 Morgan Stanley Sell 1,595 2.150 9/20/08 -- 5,884 Six Flags, Inc. Sell 535 8.250 12/20/08 -- (39,336) Toys "R" Us, Inc. Sell 550 1.450 9/20/08 -- (8,790) XL Capital Ltd. Sell 610 3.550 9/20/09 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Credit Suisse International: ArvinMeritor, Inc. Sell 885 1.550 9/20/08 -- (10,166) CenturyTel, Inc. Buy 420 1.230 9/20/13 -- 8,898 Intelsat Ltd. Sell 570 3.450 9/20/08 -- 2,275 iStar Financial, Inc. Sell 160 12.000 3/20/09 -- 5,889 iStar Financial, Inc. Sell 65 4.000 12/20/12 -- (6,231) Morgan Stanley Sell 1,715 2.150 9/20/08 -- 6,327 Rite Aid Corp. Sell 115 7.500 3/20/09 -- 1,453 Saks, Inc. Sell 900 2.000 9/20/08 -- 917 Sprint Nextel Corp. Sell 1,300 6.300 3/20/09 -- 25,645 The Bear Stearns Cos., Inc. Sell 645 2.088 12/20/08 -- 281 The Goodyear Tire & Rubber Co. Sell 850 1.550 9/20/08 -- 88 TXU Corp. Sell 175 5.910 12/20/12 -- (1,164) TXU Corp. Sell 170 6.050 12/20/12 -- (330) TXU Corp. Sell 175 6.000 12/20/12 -- (634) Vornado Realty LP Sell 300 3.600 3/20/09 -- 7,096 Wachovia Corp. Sell 585 1.000 3/20/09 -- 39 Washington Mutual, Inc. Sell 320 6.500 12/20/08 -- (1,324) Washington Mutual, Inc. Sell 1,110 6.800 6/20/09 -- (9,953) - ----------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: ABX.HE.AA.06-2 Index Sell 240 0.170 5/25/46 28,798 (191,127) Allied Waste North America, Inc. Sell 340 2.000 9/20/09 -- (1,791) Allied Waste North America, Inc. Sell 530 2.000 9/20/09 -- (2,792) Ambac Assurance Corp. Sell 620 4.550 9/20/08 -- (48,441) Ambac Assurance Corp. Sell 790 4.550 9/20/08 -- (61,723) Ambac Assurance Corp. Sell 315 8.450 12/20/08 -- (26,808) CDX.NA.IG.10 Index Buy 2,120 1.550 6/20/13 47,040 (11,681) Cemex Sell 300 2.000 3/20/09 -- 65 Centex Corp. Sell 135 1.550 9/20/09 -- (3,457) Centurytel, Inc. Buy 655 1.230 9/20/13 -- 13,877 Countrywide Home Loans, Inc. Sell 435 3.250 9/20/08 -- (2,675) Dillard's, Inc. Sell 225 0.750 9/20/08 -- (2,164) Dow Jones CDX.NA.IG.7 Index Buy 4,700 0.400 12/20/11 (483) 185,058 Georgia-Pacific Corp. Sell 850 1.750 9/20/08 -- (3,438) Intelsat Ltd. Sell 230 2.850 9/20/08 -- 569
F11 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Deutsche Bank AG: Continued iStar Financial, Inc. Sell $ 600 3.000% 12/20/08 $ -- $ (19,953) iStar Financial, Inc. Sell 75 4.320 12/20/12 -- (6,403) iStar Financial, Inc. Sell 400 12.000 3/20/09 -- 14,724 iStar Financial, Inc. Sell 1,035 2.925 12/20/08 -- (34,795) Jones Apparel Group, Inc. Sell 290 2.720 6/20/13 -- (5,702) Jones Apparel Group, Inc. Buy 290 2.635 6/20/18 -- 8,761 Kohl's Corp. Sell 280 1.180 6/20/13 -- (272) Kohl's Corp. Buy 280 1.300 6/20/18 -- 518 Lehman Brothers Holdings, Inc. Sell 1,005 1.410 9/20/08 -- (11,897) Levi Strauss & Co. Sell 375 0.900 9/20/08 -- (74) Levi Strauss & Co. Sell 500 1.000 9/20/08 -- 28 Liz Claiborne, Inc. Sell 1,095 3.250 6/20/09 -- 678 MBIA, Inc. Sell 555 0.520 9/20/08 -- (45,839) MBIA, Inc. Sell 555 0.600 9/20/08 -- (45,731) MBIA Insurance Corp. Sell 865 8.850 12/20/08 -- (151,530) Owens-Illinois, Inc. Sell 475 1.250 9/20/08 -- 114 Prudential Financial, Inc. Sell 385 2.050 6/20/09 -- (147) Tenet Healthcare Corp. Sell 870 1.600 3/20/09 -- (8,483) The Bear Stearns Cos., Inc. Sell 2,090 2.350 9/20/08 -- (2,065) Vornado Realty LP Sell 605 3.875 6/20/09 -- 15,571 Wachovia Corp. Sell 1,305 1.000 3/20/09 -- 87 Washington Mutual, Inc. Sell 610 4.500 12/20/08 -- (8,479) Washington Mutual, Inc. Sell 125 4.500 12/20/08 -- (1,738) XL Capital Ltd. Sell 690 3.550 9/20/09 -- (2,201) - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Capital Markets LP: ABX.HE.AA.06-2 Index Sell 330 0.170 5/25/46 130,342 (262,342) ABX.HE.AA.06-2 Index Sell 85 0.170 5/25/46 7,003 (67,573) Capmark Financial Group, Inc. Sell 535 0.950 6/20/12 -- (140,393) Citigroup, Inc. Sell 635 1.250 9/20/08 -- (19,560) D.R. Horton, Inc. Sell 475 4.210 12/20/08 -- 693 Dole Food Co., Inc. Sell 850 3.880 9/20/08 -- (5,709) First Data Corp. Sell 545 1.150 9/20/08 -- (2,933) General Mills, Inc. Sell 715 0.380 12/20/12 -- (508) iStar Financial, Inc. Sell 75 3.950 12/20/12 -- (7,312) K. Hovnanian Enterprises, Inc. Sell 310 6.750 9/20/08 -- (339) Pulte Homes, Inc. Sell 800 2.750 9/20/09 -- (9,030) Sara Lee Corp. Buy 695 0.419 9/20/12 -- 1,425 Smurfit-Stone Container Enterprises, Inc. Sell 845 1.450 9/20/08 -- 158 Sprint Nextel Corp. Sell 470 6.300 3/20/09 -- 9,272 - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: Amkor Technology, Inc. Sell 80 2.650 9/20/08 -- 79 R.H. Donnelley Corp. Sell 655 9.000 3/20/09 -- 15,362 Univision Communications, Inc. Sell 60 5.000 6/20/09 6,600 (458) Univision Communications, Inc. Sell 160 5.000 6/20/09 9,600 (1,222) Univision Communications, Inc. Sell 155 5.000 6/20/09 15,500 (1,184) - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: ABX.HE.AA.06-2 Index Sell 350 0.170 5/25/46 226,597 (279,074)
F12 | OPPENHEIMER BALANCED FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Continued Ambac Assurance Corp. Sell $ 260 8.500% 12/20/08 $ -- $ (22,069) Ambac Assurance Corp. Sell 330 4.650 9/20/08 -- (25,704) Cemex, Sociedad Anonima Bursatil De Capital Variable Sell 610 1.950 3/20/09 -- (93) Centex Corp. Sell 230 3.750 6/20/09 -- 175 CenturyTel, Inc. Buy 305 1.230 9/20/13 -- 6,462 D.R. Horton, Inc. Sell 850 4.200 12/20/08 -- 1,197 General Mills, Inc. Sell 870 0.400 12/20/12 -- 98 Genworth Financial, Inc. Sell 910 3.250 3/20/09 -- 1,180 Harrah's Operating Co., Inc. Sell 755 5.000 3/20/10 37,750 (61,038) Limited Brands, Inc. Sell 285 2.900 6/20/13 -- (109) Limited Brands, Inc. Buy 285 2.930 6/20/18 -- (13,977) Liz Claiborne, Inc. Buy 420 2.920 6/20/18 -- 5,766 Liz Claiborne, Inc. Sell 420 3.150 6/20/13 -- 720 Liz Claiborne, Inc. Sell 150 2.750 6/20/13 -- (2,175) Liz Claiborne, Inc. Buy 150 2.600 6/20/18 -- 5,172 Macy's, Inc. Buy 565 2.540 6/20/18 -- (7,337) Macy's, Inc. Sell 280 2.570 6/20/13 -- 6,918 Macy's, Inc. Buy 280 2.500 6/20/18 -- (2,868) Macy's, Inc. Sell 565 2.610 6/20/13 -- 14,917 Merrill Lynch & Co., Inc. Sell 320 3.000 9/20/08 -- 1,927 Morgan Stanley Sell 2,110 0.640 9/20/08 -- (287) Nortel Networks Corp. Sell 135 1.850 9/20/08 -- 41 Prudential Financial, Inc. Sell 395 2.100 6/20/09 -- 42 R.H. Donnelley Corp. Sell 95 5.000 3/20/09 9,500 (3,659) Rite Aid Corp. Sell 275 5.000 9/20/09 8,250 (6,362) Sprint Nextel Corp. Sell 880 6.300 3/20/09 -- 17,360 The Hartford Financial Services Group, Inc. Sell 300 2.350 3/20/09 -- 2,982 The Hartford Financial Services Group, Inc. Sell 310 2.350 3/20/09 -- 3,082 Toys "R" Us, Inc. Sell 90 8.610 3/20/09 -- 2,491 Toys "R" Us, Inc. Sell 60 8.610 3/20/09 -- 1,661 Univision Communications, Inc. Sell 70 3.000 12/20/08 -- (2,535) Univision Communications, Inc. Sell 585 3.000 12/20/08 -- (21,183) Univision Communications, Inc. Sell 150 5.000 3/20/09 12,750 (5,238) Washington Mutual, Inc. Sell 320 6.800 6/20/09 -- (2,869) Washington Mutual, Inc. Sell 285 4.400 12/20/08 -- (4,101) - --------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: ABX.HE.AA.06-2 Index Sell 85 0.170 5/25/46 6,791 (67,775) ABX.HE.AA.06-2 Index Sell 160 0.170 5/25/46 15,999 (127,577) Capmark Financial Group, Inc. Sell 50 5.000 6/20/12 13,500 (7,636) Countrywide Home Loans, Inc. Sell 435 0.750 9/20/08 -- (5,404) Countrywide Home Loans, Inc. Sell 1,615 0.420 6/20/09 -- (41,631) First Data Corp. Sell 345 1.350 9/20/08 -- (1,683) Ford Motor Co. Sell 525 7.050 12/20/16 -- (131,285) Ford Motor Co. Sell 1,100 7.150 12/20/16 -- (242,160) General Motors Corp. Sell 545 5.800 12/20/16 -- (183,912) General Motors Corp. Sell 535 5.750 12/20/16 -- (181,282)
F13 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: Continued Harrah's Operating Co., Inc. Sell $ 385 2.200% 9/20/08 $ -- $ (3,877) Inco Ltd. Buy 550 0.630 3/20/17 -- 6,360 Inco Ltd. Buy 545 0.700 3/20/17 -- (514) J.C. Penney Co., Inc. Sell 545 1.300 12/20/17 -- (16,651) J.C. Penney Co., Inc. Sell 525 1.070 12/20/17 -- (24,404) Jones Apparel Group, Inc. Sell 575 3.200 6/20/13 -- (160) Jones Apparel Group, Inc. Buy 575 2.970 6/20/18 -- 4,853 Kohl's Corp. Buy 820 0.870 12/20/17 -- 8,876 Kohl's Corp. Buy 785 0.660 12/20/17 -- 20,515 Lennar Corp. Sell 535 2.900 12/20/08 -- (9,681) Liz Claiborne, Inc. Sell 560 3.100 6/20/13 -- (175) Liz Claiborne, Inc. Buy 560 2.900 6/20/18 -- 8,414 Merrill Lynch & Co., Inc. Sell 1,550 3.000 9/20/08 -- 9,336 Merrill Lynch & Co., Inc. Sell 570 3.250 9/20/08 -- 3,794 Residential Capital LLC Sell 1,290 6.120 9/20/08 -- (22,872) Sara Lee Corp. Buy 890 0.418 9/20/12 -- 1,859 The Hartford Financial Services Group, Inc. Sell 300 2.400 3/20/09 -- 3,094 Toys "R" Us, Inc. Sell 325 2.550 9/20/08 -- (4,300) Vale Overseas Ltd. Sell 550 1.100 3/20/17 -- (24,698) Vale Overseas Ltd. Sell 545 1.170 3/20/17 -- (21,909) ---------------------- $ 575,537 $(2,645,775) ======================
- -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
SWAP NOTIONAL RECEIVED BY THE TERMINATION COUNTERPARTY AMOUNT PAID BY THE FUND FUND DATE VALUE - -------------------------------------------------------------------------------------------- Three-Month USD Deutsche Bank AG $4,300,000 BBA LIBOR 5.5290% 8/10/17 $341,562
Abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
RECEIVED BY TERMINATION SWAP COUNTERPARTY NOTIONAL AMOUNT PAID BY THE FUND THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------ If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index minus Deutsche Bank AG $ 2,200,000 AAA 8.5+ Index 15 basis points 8/1/08 $(86,679) - ------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Group, Inc. (The): If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 1,100,000 AAA 8.5+ Index AAA 8.5+ Index 3/1/09 (43,110)
F14 | OPPENHEIMER BALANCED FUND/VA - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
RECEIVED BY TERMINATION SWAP COUNTERPARTY NOTIONAL AMOUNT PAID BY THE FUND THE FUND DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The): Continued If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index $ 1,440,000 AAA 8.5+ Index plus 200 basis points 3/1/09 $ (35,052) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 3,750,000 AAA 8.5+ Index minus 50 basis points 12/1/08 (156,008) - ------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 500,000 AAA 8.5+ Index minus 30 basis points 8/1/08 (19,848) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA Index plus 3,200,000 AAA Index 25 basis points 2/1/09 (66,038) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 9,200,000 AAA 8.5+ Index minus 15 basis points 8/1/08 (364,214) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 1,310,000 AAA 8.5+ Index AAA 8.5+ Index 3/1/09 (51,719) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index plus 1,820,000 AAA 8.5+ Index 250 basis points 3/1/09 (68,568) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index plus 1,440,000 AAA 8.5+ Index 200 basis points 3/1/09 (54,771) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 1,800,000 AAA 8.5+ Index AAA 8.5+ Index 5/1/09 (71,064) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 3,600,000 AAA 8.5+ Index minus 20 basis points 5/1/09 (142,649)
F15 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
RECEIVED BY TERMINATION SWAP COUNTERPARTY NOTIONAL AMOUNT PAID BY THE FUND THE FUND DATE VALUE - -------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index $ 6,000,000 AAA 8.5+ Index minus 30 basis points 8/1/08 $ (235,920) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 3,200,000 AAA Index AAA Index 2/1/09 (57,200) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 6,100,000 AAA Index AAA Index 3/1/09 (106,547) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 2,670,000 AAA 8.5+ Index plus 250 basis points 3/1/09 (43,333) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 2,900,000 AAA 8.5+ Index plus 350 basis points 3/1/09 (25,537) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 7,280,000 AAA 8.5+ Index minus 50 basis points 12/1/08 (283,863) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 1,860,000 AAA 8.5+ Index minus 65 basis points 12/1/08 (73,911) ------------ $(1,986,031) ============
Abbreviation is as follows: CMBS Commercial Mortgage-Backed Securities SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F16 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30,2008 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- ASSETS - --------------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $ 428,797,517) $ 463,160,730 Affiliated companies (cost $ 11,064,442) 11,064,442 ----------------- 474,225,172 - ---------------------------------------------------------------------------------------------------------------------- Cash 350,282 - ---------------------------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $ 122,257) 785,932 - ---------------------------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 1,886,791 Investments sold (including $ 1,222,426 sold on a when-issued or delayed delivery basis) 1,267,190 Shares of beneficial interest sold 159,597 Other 17,435 ----------------- Total assets 478,692,399 - ---------------------------------------------------------------------------------------------------------------------- LIABILITIES - ---------------------------------------------------------------------------------------------------------------------- Unrealized depreciation on foreign currency exchange contracts 23,841 - ---------------------------------------------------------------------------------------------------------------------- Swaps, at value (premiums received $453,280) 5,076,176 - ---------------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $37,813,522 purchased on a when-issued or delayed delivery basis) 41,542,372 Shares of beneficial interest redeemed 754,430 Distribution and service plan fees 70,557 Shareholder communications 65,793 Futures margins 58,276 Trustees' compensation 14,135 Transfer and shareholder servicing agent fees 1,740 Other 25,838 ----------------- Total liabilities 47,633,158 - ---------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 431,059,241 ================ - ---------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ---------------------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 31,024 - ---------------------------------------------------------------------------------------------------------------------- Additional paid-in capital 414,423,677 - ---------------------------------------------------------------------------------------------------------------------- Accumulated net investment income 7,693,651 - ---------------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (21,811,709) - ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 30,722,598 ----------------- NET ASSETS $ 431,059,241 ================= - ---------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ---------------------------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $ 322,437,900 and 23,165,460 shares of beneficial interest outstanding) $ 13.92 - ---------------------------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $108,621,341 and 7,858,960 shares of beneficial interest outstanding) $ 13.82
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F17 | OPPENHEIMER BALANCED FUND/VA STATEMENT OF OPERATIONS Unaudited - -------------------------------------------------------------------------------- For the Six Months Ended June 30, 2008 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------------------- Interest $ 6,662,738 - ------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $88,985) 1,730,560 Affiliated companies 124,964 ----------------- Total investment income 8,518,262 - ------------------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------------------- Management fees 1,675,678 - ------------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 141,313 - ------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,948 Service shares 4,980 - ------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 12,531 Service shares 4,072 - ------------------------------------------------------------------------------------------- Custodian fees and expenses 13,830 - ------------------------------------------------------------------------------------------- Trustees' compensation 6,967 - ------------------------------------------------------------------------------------------- Administration service fees 750 - ------------------------------------------------------------------------------------------- Other 34,214 ----------------- Total expenses 1,899,283 Less waivers and reimbursements of expenses (217,484) ----------------- Net expenses 1,681,799 - ------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 6,836,463 - ------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: - ------------------------------------------------------------------------------------------- Investments from unaffiliated companies (13,535,466) Closing and expiration of futures contracts (994,478) Foreign currency transactions 2,622,525 Short positions 311 Swap contracts 617,583 ----------------- Net realized loss (11,289,525) - ------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (25,722,258) Translation of assets and liabilities denominated in foreign currencies (897,001) Futures contracts 169,774 Short positions 1,220 Swap contracts (3,172,289) ----------------- Net change in unrealized appreciation (29,620,554) - ------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (34,073,616) =================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F18 | OPPENHEIMER BALANCED FUND/VA STATEMNTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- OPERATIONS - ------------------------------------------------------------------------------------------------- Net investment income $ 6,836,463 $ 13,368,547 - ------------------------------------------------------------------------------------------------- Net realized gain (loss) (11,289,525) 19,935,422 - ------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (29,620,554) (13,245,008) ------------------------------ Net increase (decrease) in net assets resulting from operations (34,073,616) 20,058,961 - ------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (8,878,080) (10,919,746) Service shares (2,607,795) (2,568,291) ------------------------------ (11,485,875) (13,488,037) - ------------------------------------------------------------------------------------------------- Distributions from net realized gain: Non-Service shares (21,412,945) (34,150,478) Service shares (7,011,379) (8,836,795) ------------------------------ (28,424,324) (42,987,273) - ------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (7,543,876) (21,014,578) Service shares 5,239,642 17,776,612 ------------------------------ (2,304,234) (3,237,966) - ------------------------------------------------------------------------------------------------- NET ASSETS - ------------------------------------------------------------------------------------------------- Total decrease (76,288,049) (39,654,315) - ------------------------------------------------------------------------------------------------- Beginning of period 507,347,290 547,001,605 ------------------------------ End of period (including accumulated net investment income of $7,693,651 and $12,343,063, respectively) $ 431,059,241 $507,347,290 ==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F19 | OPPENHEIMER BALANCED FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 16.41 $ 17.69 $ 17.07 $ 17.35 $ 15.92 $ 13.16 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .22 1 .43 1 .40 1 .33 1 .26 1 .27 Net realized and unrealized gain (loss) (1.37) .19 1.38 .31 1.33 2.90 -------------------------------------------------------------------------- Total from investment operations (1.15) .62 1.78 .64 1.59 3.17 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.39) (.46) (.36) (.30) (.16) (.41) Distributions from net realized gain (.95) (1.44) (.80) (.62) -- -- -------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.34) (1.90) (1.16) (.92) (.16) (.41) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 13.92 $ 16.41 $ 17.69 $ 17.07 $ 17.35 $ 15.92 ========================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 (6.88)% 3.79% 11.15% 3.89% 10.10% 24.96% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 322,438 $385,948 $ 435,639 $503,753 $ 547,290 $ 533,710 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 348,266 $418,103 $ 456,513 $522,754 $ 528,655 $ 475,389 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 3.04% 2.55% 2.42% 1.98% 1.59% 1.82% Total expenses 0.76% 4 0.75% 4 0.75% 4 0.74% 0.74% 0.76% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.67% 0.73% 0.75% 0.74% 0.74% 0.76% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 27% 5 68% 5 76% 5 67% 5 68% 5 248%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.76% Year Ended December 31, 2007 0.75% Year Ended December 31, 2006 0.75%
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - --------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 160,638,398 $ 129,109,318 Year Ended December 31, 2007 $ 296,201,319 $ 315,527,720 Year Ended December 31, 2006 $ 612,825,833 $ 666,549,894 Year Ended December 31, 2005 $1,224,652,741 $1,250,455,539 Year Ended December 31, 2004 $1,460,076,994 $1,473,590,963
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F20 | OPPENHEIMER BALANCED FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 16.28 $ 17.57 $ 16.97 $ 17.26 $ 15.87 $ 13.14 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .20 1 .38 1 .36 1 .29 1 .23 1 .39 Net realized and unrealized gain (loss) (1.36) .19 1.37 .31 1.31 2.74 ------------------------------------------------------------------- Total from investment operations (1.16) .57 1.73 .60 1.54 3.13 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.35) (.42) (.33) (.27) (.15) (.40) Distributions from net realized gain (.95) (1.44) (.80) (.62) -- -- ------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.30) (1.86) (1.13) (.89) (.15) (.40) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 13.82 $ 16.28 $ 17.57 $ 16.97 $ 17.26 $ 15.87 =================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (7.01)% 3.49% 10.86% 3.67% 9.79% 24.69% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 108,621 $121,399 $111,363 $88,156 $ 59,650 $25,302 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 113,603 $117,012 $100,010 $72,977 $ 39,851 $ 9,908 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 2.79% 2.30% 2.17% 1.74% 1.41% 1.37% Total expenses 1.02% 4 1.00% 4 1.01% 4 1.00% 1.02% 1.01% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.92% 0.98% 1.01% 1.00% 1.02% 1.01% - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 27% 5 68% 5 76% 5 67% 5 68% 5 248%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 1.02% Year Ended December 31, 2007 1.00% Year Ended December 31, 2006 1.01%
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - --------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 160,638,398 $ 129,109,318 Year Ended December 31, 2007 $ 296,201,319 $ 315,527,720 Year Ended December 31, 2006 $ 612,825,833 $ 666,549,894 Year Ended December 31, 2005 $ 1,224,652,741 $ 1,250,455,539 Year Ended December 31, 2004 $ 1,460,076,994 $ 1,473,590,963
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F21 | OPPENHEIMER BALANCED FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - ------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Balanced Fund/VA (the "Fund"), is a separate series of Oppenheimer Variable Account Funds, an open end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek a high total investment return, which includes current income and capital appreciation in the value of its shares. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F22 | OPPENHEIMER BALANCED FUND/VA In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of June 30, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS ------------------------------------------------------- Purchased securities $ 37,813,522 Sold securities 1,222,426
- -------------------------------------------------------------------------------- SECURITIES SOLD SHORT. The Fund may short sell when-issued securities for future settlement. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss for the value of the open short position. The Fund records a realized gain or loss when the short position is closed out. Short positions are reported on a schedule following the Statement of Investments. The Fund had no open short positions at period end. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received F23 | OPPENHEIMER BALANCED FUND/VA NOTES TO FINANCIALSTATEMENTS Unaudited/Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENTS IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October losses of $10,203,576 and straddle losses of $316,633. As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $21,809,734 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. F24 | OPPENHEIMER BALANCED FUND/VA The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $441,115,237 Federal tax cost of other investments (79,424,064) ------------ Total federal tax cost $361,691,173 ============ Gross unrealized appreciation $ 60,330,900 Gross unrealized depreciation (30,867,247) ------------ Net unrealized appreciation $ 29,463,653 ============
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. F25 | OPPENHEIMER BALANCED FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ---------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 562,678 $ 8,070,498 999,612 $ 16,748,816 Dividends and/or distributions reinvested 2,214,256 30,291,025 2,818,651 45,070,224 Redeemed (3,131,487) (45,905,399) (4,921,045) (82,833,618) -------------------------------------------------------------- Net decrease (354,553) $ (7,543,876) (1,102,782) $(21,014,578) ============================================================== - ----------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 530,926 $ 7,838,788 1,507,547 $ 25,038,747 Dividends and/or distributions reinvested 707,292 9,619,174 717,301 11,405,086 Redeemed (836,696) (12,218,320) (1,107,184) (18,667,221) -------------------------------------------------------------- Net increase 401,522 $ 5,239,642 1,117,664 $ 17,776,612 ==============================================================
- ------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES ------------------------------------------------------------------- Investment securities $ 110,593,255 $ 138,650,069 U.S. government and government agency obligations -- 1,031,793 To Be Announced (TBA) mortgage-related securities 160,638,398 129,109,318
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ----------------------------------------- Up to$200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. F26 | OPPENHEIMER BALANCED FUND/VA - ------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,942 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - ------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - ------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective September 1, 2007, the Manager voluntarily agreed to waive a portion of the advisory fee and/or reimburse certain expenses so the total expenses of the Fund will not exceed 0.67% of average net assets for Non-Service shares and 0.92% of average annual net assets for Service shares. During the six months ended June 30, 2008, OFS waived $158,827 and $55,218 for Non-Service and Service shares, respectively. This voluntary waiver and/or reimbursement may be withdrawn at any time. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $3,439 for IMMF management fees. - ------------------------------------------------------------------------------- 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the coun-terparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. - ------------------------------------------------------------------------------- 6. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. F27 | OPPENHEIMER BALANCED FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 6. FUTURES CONTRACTS Continued Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. - ------------------------------------------------------------------------------- 7. SWAP CONTRACTS The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Risks of entering into swap contracts include credit, market and liquidity risk. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination. - ------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps on a single security, or a basket of securities. In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations. F28 | OPPENHEIMER BALANCED FUND/VA Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities). - ------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between counterparties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received. - ------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between counterparties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments. - ------------------------------------------------------------------------------- 8. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. - ------------------------------------------------------------------------------- 9. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F29 | OPPENHEIMER BALANCED FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. F30 | OPPENHEIMER BALANCED FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - ------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER BALANCED FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Value Fund/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ---------------------------------------------------------------------------------------------------- Non-Service shares $ 1,000.00 $ 890.00 $ 5.89 - ---------------------------------------------------------------------------------------------------- Service shares 1,000.00 889.40 7.07 HYPOTHETICAL (5% return before expenses) - ---------------------------------------------------------------------------------------------------- Non-Service shares 1,000.00 1,018.65 6.29 - ---------------------------------------------------------------------------------------------------- Service shares 1,000.00 1,017.40 7.55
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------------ Non-Service shares 1.25% - ------------------------------------------ Service shares 1.50
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 4 | OPPENHEIMER VALUE FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------- - ----------------------------------------------------------------------- COMMON STOCKS--94.8% - ----------------------------------------------------------------------- CONSUMER DISCRETIONARY--5.8% - ----------------------------------------------------------------------- MEDIA--5.8% Cinemark Holdings, Inc. 5,630 $ 73,528 - ----------------------------------------------------------------------- Liberty Global, Inc., Series C 1 7,408 224,907 - ----------------------------------------------------------------------- News Corp., Inc., Cl. A 7,272 109,371 ------------ 407,806 - ----------------------------------------------------------------------- CONSUMER STAPLES--8.0% - ----------------------------------------------------------------------- BEVERAGES--4.9% Coca-Cola Co. (The) 6,580 342,028 - ----------------------------------------------------------------------- TOBACCO--3.1% Philip Morris International, Inc. 4,461 220,329 - ----------------------------------------------------------------------- ENERGY--15.4% - ----------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--0.9% Halliburton Co. 1,240 65,807 - ----------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--14.5% Devon Energy Corp. 3,190 383,310 - ----------------------------------------------------------------------- Exxon Mobil Corp. 4,286 377,725 - ----------------------------------------------------------------------- Murphy Oil Corp. 1,760 172,568 - ----------------------------------------------------------------------- Suncor Energy, Inc. 1,400 81,368 ------------ 1,014,971 - ----------------------------------------------------------------------- FINANCIALS--22.1% - ----------------------------------------------------------------------- CAPITAL MARKETS--15.4% Credit Suisse Group AG, ADR 7,580 343,450 - ----------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 1,980 346,302 - ----------------------------------------------------------------------- Julius Baer Holding AG 3,112 208,288 - ----------------------------------------------------------------------- Morgan Stanley 1,130 40,759 - ----------------------------------------------------------------------- UBS AG 1 6,783 140,137 ------------ 1,078,936 - ----------------------------------------------------------------------- CONSUMER FINANCE--1.0% American Express Co. 1,800 67,806 - ----------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--1.7% Citigroup, Inc. 7,030 117,823 - ----------------------------------------------------------------------- INSURANCE--4.0% Everest Re Group Ltd. 2,497 199,036 - ----------------------------------------------------------------------- National Financial Partners Corp. 4,240 84,037 ------------ 283,073 - ----------------------------------------------------------------------- HEALTH CARE--7.3% - ----------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--1.5% Aetna, Inc. 890 36,072 - ----------------------------------------------------------------------- WellPoint, Inc. 1 1,460 69,584 ------------ 105,656 - ----------------------------------------------------------------------- PHARMACEUTICALS--5.8% Abbott Laboratories 5,950 315,172 - ----------------------------------------------------------------------- Schering-Plough Corp. 4,500 88,605 ------------ 403,777 - ----------------------------------------------------------------------- INDUSTRIALS--9.7% - ----------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--4.5% Siemens AG, Sponsored ADR 2,864 315,412 - ----------------------------------------------------------------------- MACHINERY--4.4% Deere & Co. 880 63,474 - ----------------------------------------------------------------------- Navistar International Corp. 1 3,793 249,655 ------------ 313,129 - ----------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.8% Aircastle Ltd. 6,620 55,674 - ----------------------------------------------------------------------- INFORMATION TECHNOLOGY--6.7% - ----------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--6.7% Lam Research Corp. 1 8,080 292,092 - ----------------------------------------------------------------------- Varian Semiconductor Equipment Associates, Inc. 1 5,020 174,796 ------------ 466,888 - ----------------------------------------------------------------------- MATERIALS--8.2% - ----------------------------------------------------------------------- CHEMICALS--7.0% Eastman Chemical Co. 2,970 204,514 - ----------------------------------------------------------------------- FMC Corp. 1,000 77,440 - ----------------------------------------------------------------------- Lubrizol Corp. (The) 4,467 206,956 ------------ 488,910 - ----------------------------------------------------------------------- METALS & MINING--1.2% Carpenter Technology Corp. 1,500 65,475 - ----------------------------------------------------------------------- Teck Cominco Ltd., Cl. B 400 19,180 ------------ 84,655 - ----------------------------------------------------------------------- TELECOMMUNICATION SERVICES--4.1% - ----------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--3.3% AT&T, Inc. 6,930 233,472 - ----------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.8% Sprint Nextel Corp. 5,840 55,480 - ----------------------------------------------------------------------- UTILITIES--7.5% - ----------------------------------------------------------------------- ELECTRIC UTILITIES--7.5% Exelon Corp. 2,916 262,323 - ----------------------------------------------------------------------- FirstEnergy Corp. 3,230 265,926 ------------ 528,249 ------------ Total Common Stocks (Cost $6,702,276) 6,649,881
F1 | OPPENHEIMER VALUE FUND/VA STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------- - ----------------------------------------------------------------------- INVESTMENT COMPANY--5.2% - ----------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 2,3 (Cost $362,646) 362,646 $ 362,646 - ----------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $7,064,922) 100.0% 7,012,527 - ----------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 0.0 804 ------------------------- NET ASSETS 100.0% $7,013,331 =========================
FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - --------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 177,433 2,641,447 2,456,234 362,646
DIVIDEND VALUE INCOME - --------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $ 362,646 $ 5,710
3. Rate shown is the 7-day yield as of June 30, 2008. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* ------------------------------------------------------------------------------------------------ Level 1--Quoted Prices $ 6,804,239 $ -- Level 2--Other Significant Observable Inputs 208,288 -- Level 3--Significant Unobservable Inputs -- -- --------------------------------- Total $ 7,012,527 $ -- =================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F2 | OPPENHEIMER VALUE FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - -------------------------------------------------------------------------------- June 30, 2008 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $6,702,276) $ 6,649,881 Affiliated companies (cost $362,646) 362,646 -------------- 7,012,527 - ----------------------------------------------------------------------------------------------------------------------- Cash 1,836 - ----------------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 98,473 Shares of beneficial interest sold 13,122 Dividends 9,492 Other 3,957 -------------- Total assets 7,139,407 - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES - ----------------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 87,290 Shares of beneficial interest redeemed 16,078 Legal, auditing and other professional fees 9,997 Distribution and service plan fees 3,794 Trustees' compensation 3,599 Shareholder communications 1,876 Transfer and shareholder servicing agent fees 6 Other 3,436 -------------- Total liabilities 126,076 - ----------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 7,013,331 ============== - ----------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------------------------------------------------ Par value of shares of beneficial interest $ 672 - ----------------------------------------------------------------------------------------------------------------------- Additional paid-in capital 7,804,683 - ----------------------------------------------------------------------------------------------------------------------- Accumulated net investment income 33,504 - ----------------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (773,133) - ----------------------------------------------------------------------------------------------------------------------- Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies (52,395) -------------- NET ASSETS $ 7,013,331 ============== - ----------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ----------------------------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $ 1,079,208 and 103,386 shares of beneficial interest outstanding) $ 10.44 - ----------------------------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $5,934,123 and 568,115 shares of beneficial interest outstanding) $ 10.45
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F3 | OPPENHEIMER VALUE FUND/VA STATEMENT OF OPERATIONS UNAUDITED - -------------------------------------------------------------------------------- For the Six Months Ended June 30, 2008 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - ----------------------------------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $4,172) $ 83,794 Affiliated companies 5,710 - ----------------------------------------------------------------------------------------------------------------------- Interest 26 -------------- Total investment income 89,530 - ----------------------------------------------------------------------------------------------------------------------- EXPENSES - ----------------------------------------------------------------------------------------------------------------------- Management fees 27,564 - ----------------------------------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 1,559 Service shares 7,480 - ----------------------------------------------------------------------------------------------------------------------- Legal, auditing and other professional fees 11,276 - ----------------------------------------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 7,541 - ----------------------------------------------------------------------------------------------------------------------- Trustees' compensation 3,037 - ----------------------------------------------------------------------------------------------------------------------- Administration service fees 750 - ----------------------------------------------------------------------------------------------------------------------- Custodian fees and expenses 44 - ----------------------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees--Service shares 35 - ----------------------------------------------------------------------------------------------------------------------- Other 2,071 -------------- Total expenses 61,357 Less reduction to custodian expenses (41) Less waivers and reimbursements of expenses (8,051) -------------- Net expenses 53,265 - ----------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 36,265 - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ----------------------------------------------------------------------------------------------------------------------- Net realized loss on: Investments from unaffiliated companies (469,051) Foreign currency transactions (789) -------------- Net realized loss (469,840) - ----------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (487,185) Translation of assets and liabilities denominated in foreign currencies 2,841 -------------- Net change in unrealized depreciation (484,344) - ----------------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (917,919) ==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F4 | OPPENHEIMER VALUE FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS - -------------------------------------------------------------------------------------------------------------------------------- Net investment income $ 36,265 $ 39,402 - -------------------------------------------------------------------------------------------------------------------------------- Net realized loss (469,840) (87,194) - -------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) (484,344) 7,138 ---------------------------------- Net decrease in net assets resulting from operations (917,919) (40,654) - -------------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - -------------------------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares -- (14,051) Service shares -- (22,582) ---------------------------------- -- (36,633) - -------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gain: Non-Service shares -- (64,829) Service shares -- (232,359) ---------------------------------- -- (297,188) - -------------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (471,149) (1,050,500) Service shares 193,302 6,521,885 ---------------------------------- (277,847) 5,471,385 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) (1,195,766) 5,096,910 - -------------------------------------------------------------------------------------------------------------------------------- Beginning of period 8,209,097 3,112,187 ---------------------------------- End of period (including accumulated net investment income (loss) of $33,504 and $(2,761), respectively) $ 7,013,331 $ 8,209,097 ==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F5 | OPPENHEIMER VALUE FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 1 - ------------------------------------------------------------------ ----------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 11.73 $ 11.58 $ 11.16 $ 12.26 $ 12.90 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .07 2 .10 2 (.03) 2 .02 2 (.01) 2 .03 Net realized and unrealized gain (loss) (1.36) .59 1.61 .71 1.82 2.87 ----------------------------------------------------------------------------- Total from investment operations (1.29) .69 1.58 .73 1.81 2.90 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- (.10) (.01) (.02) (.03) -- Distributions from net realized gain -- (.44) (1.15) (1.81) (2.42) -- ----------------------------------------------------------------------------- Total dividends and/or distributions to shareholders -- (.54) (1.16) (1.83) (2.45) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 10.44 $ 11.73 $ 11.58 $ 11.16 $ 12.26 $ 12.90 ============================================================================= - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 (11.00)% 5.89% 14.03% 5.88% 14.50% 29.00% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 1,079 $ 1,728 $ 2,657 $ 2,562 $ 2,815 $ 3,871 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 1,319 $ 2,753 $ 2,695 $ 2,878 $ 3,370 $ 3,205 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income (loss) 1.20% 0.80% (0.29)% 0.15% (0.08)% 0.27% Total expenses 1.46% 5 1.49% 5 2.14% 5 1.78% 1.82% 1.39% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.25% 1.25% 2.14% 1.78% 1.82% 1.39% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 73% 142% 124% 86% 100% 120%
1. For the period from January 2, 2003 (commencement of operations) to December 31, 2003. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 1.46% Year Ended December 31, 2007 1.49% Year Ended December 31, 2006 2.14%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F6 | OPPENHEIMER VALUE FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 1 - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 11.75 $ 11.57 $ 11.89 - ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) 2 .05 .06 (.05) Net realized and unrealized gain (loss) (1.35) .60 .88 ------------------------------------- Total from investment operations (1.30) .66 .83 - ------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- (.04) -- Distributions from net realized gain -- (.44) (1.15) ------------------------------------- Total dividends and/or distributions to shareholders -- (.48) (1.15) - ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 10.45 $ 11.75 $ 11.57 ===================================== - ------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (11.06)% 5.70% 6.81% - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 5,934 $ 6,481 $ 455 - ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 6,065 $ 3,527 $ 268 - ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income (loss) 0.94% 0.49% (1.30)% Total expenses 5 1.72% 1.63% 2.89% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.50% 1.50% 2.88% - ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 73% 142% 124%
1. For the period from September 18, 2006 (inception of offering) to December 31, 2006. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 1.72% Year Ended December 31, 2007 1.63% Year Ended December 31, 2006 2.89%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F7 | OPPENHEIMER VALUE FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Value Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek long-term growth of capital by investing primarily in common stocks with low price-earnings ratios and better-than-anticipated earnings. Realization of current income is a secondary consideration. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. F8 | OPPENHEIMER VALUE FUND/VA "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. F9 | OPPENHEIMER VALUE FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October losses of $291,449 and straddle losses of $458. As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $761,747 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 7,163,659 ============ Gross unrealized appreciation $ 689,252 Gross unrealized depreciation (840,384) ------------ Net unrealized depreciation $ (151,132) ============
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an F10 | OPPENHEIMER VALUE FUND/VA accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 80 $ 851 -- $ -- Dividends and/or distributions reinvested -- -- -- -- Redeemed (44,038) (472,000) (82,215) (1,050,500) ----------------------------------------------------------------- Net decrease (43,958) $ (471,149) (82,215) $ (1,050,500) ================================================================= - --------------------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 135,644 $ 1,485,082 525,491 $ 6,694,320 Dividends and/or distributions reinvested -- -- 21,569 254,941 Redeemed (119,306) (1,291,780) (34,566) (427,376) ----------------------------------------------------------------- Net increase 16,338 $ 193,302 512,494 $ 6,521,885 =================================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES ---------------------------------------------------------------------------- Investment securities $ 5,198,806 $ 5,656,437
F11 | OPPENHEIMER VALUE FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ------------------------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $29 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective January 1, 2007, the Manager voluntarily agreed to an expense waiver of any total expenses over 1.25% of average annual net assets for Non-Service shares and 1.50% of average annual net assets for Service shares. During the six months ended June 30, 2008, OFS waived $1,359 and $6,517 for Non-Service and Service shares, respectively. The expense waiver is a voluntary undertaking and may be terminated by the Manager at any time. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $175 for IMMF management fees. - -------------------------------------------------------------------------------- 5. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F12 | OPPENHEIMER VALUE FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 5 | OPPENHEIMER VALUE FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Core Bond Fund/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - -------------------------------------------------------------------------------------------------------------- Non-Service shares $1,000.00 $ 986.50 $3.12 - -------------------------------------------------------------------------------------------------------------- Service shares 1,000.00 985.60 4.35 HYPOTHETICAL (5% return before expenses) - -------------------------------------------------------------------------------------------------------------- Non-Service shares 1,000.00 1,021.73 3.17 - -------------------------------------------------------------------------------------------------------------- Service shares 1,000.00 1,020.49 4.43
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows: CLASS EXPENSE RATIOS - -------------------------------------- Non-Service shares 0.63% - -------------------------------------- Service shares 0.88 The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER CORE BOND FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- ASSET-BACKED SECURITIES -- 2.6% - ----------------------------------------------------------------------------- Ace Securities Corp. Home Equity Loan Trust, Asset-Backed Pass-Through Certificates, Series 2005-HE7, Cl. A2B, 2.663%, 11/25/35 1 $ 15,644 $ 15,514 - ----------------------------------------------------------------------------- Argent Securities Trust 2004-W8, Asset-Backed Pass-Through Certificates, Series 2004-W8, Cl. A2, 2.963%, 5/25/34 1 1,538,283 1,371,993 - ----------------------------------------------------------------------------- Argent Securities Trust 2006-M3, Asset-Backed Pass-Through Certificates, Series 2006-M3, Cl. A2B, 2.583%, 9/25/36 1 30,000 27,445 - ----------------------------------------------------------------------------- Argent Securities Trust 2006-W5, Asset-Backed Pass-Through Certificates, Series 2006-W5, Cl. A2B, 2.583%, 5/26/36 1 45,595 44,438 - ----------------------------------------------------------------------------- Centex Home Equity Loan Trust 2006-A, Asset-Backed Certificates, Series 2006-A, Cl. AV2, 2.583%, 5/16/36 1 41,923 41,133 - ----------------------------------------------------------------------------- Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15 310,000 270,601 - ----------------------------------------------------------------------------- Countrywide Home Loans, Asset-Backed Certificates: Series 2002-4, Cl. A1, 3.223%, 2/25/33 1 35,747 30,232 Series 2005-11, Cl. AF2, 4.657%, 2/25/36 476,442 475,851 Series 2005-16, Cl. 2AF2, 5.382%, 5/25/36 1 700,000 609,650 Series 2005-17, Cl. 1AF1, 2.683%, 5/25/36 1 1,478 1,470 Series 2005-17, Cl. 1AF2, 5.363%, 5/25/36 1 460,000 418,998 - ----------------------------------------------------------------------------- CWABS Asset-Backed Certificates Trust, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 2.603%, 12/25/29 1 40,000 35,768 - ----------------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2005-FF10, Mtg. Pass-Through Certificates, Series 2005-FF10, Cl. A3, 2.693%, 11/25/35 1 45,712 45,400 - ----------------------------------------------------------------------------- First Franklin . Mortgage Loan Trust 2006-FF10, Mtg. Pass-Through Certificates, Series 2006-FF10, Cl. A3, 2.573%, 7/25/36 1 50,000 48,085 - ----------------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FF5, Mtg. Pass-Through Certificates, Series 2006-FF5, Cl. 2A1, 2.533%, 5/15/36 1 2,180 2,172 - ----------------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FF9, Mtg. Pass-Through Certificates, Series 2006-FF9, Cl. 2A2, 2.593%, 7/7/36 1 30,000 28,548 - -----------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ----------------------------------------------------------------------------- Honda Auto Receivables Owner Trust, Automobile Receivable Obligations, Series 2005-2, Cl. A4, 4.15%, 10/15/10 $ 628,436 630,423 - ----------------------------------------------------------------------------- HSBC Home Equity Loan Trust 2005-3, Closed-End Home Equity Loan Asset-Backed Nts., Series 2005-3, Cl. A1, 2.742%, 1/20/35 1 630,564 584,179 - ----------------------------------------------------------------------------- HSBC Home Equity Loan Trust 2006-4, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2006-4, Cl. A2V, 2.592%, 3/20/36 1 25,000 23,907 - ----------------------------------------------------------------------------- Lehman XS Trust, Mtg. Pass-Through Certificates: Series 2005-2, Cl. 2A1B, 5.18%, 8/25/35 1 14,486 14,545 Series 2005-4, Cl. 2A1B, 5.17%, 10/25/35 365,033 363,829 - ----------------------------------------------------------------------------- Litigation Settlement Monetized Fee Trust, Asset-Backed Certificates, Series 2001-1A, Cl. A1, 8.33%, 4/25/31 2 1,823,337 1,767,452 - ----------------------------------------------------------------------------- Mastr Asset-Backed Securities Trust 2006-WMC3, Mtg. Pass-Through Certificates, Series 2006-WMC3, Cl. A3, 2.583%, 8/25/36 1 70,000 60,390 - ----------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2006-WMC1, Mtg. Asset-Backed Certificates, Series 2006-WMC1, Cl. A2B, 2.623%, 1/25/37 1 247,825 246,369 - ----------------------------------------------------------------------------- NC Finance Trust, CMO Pass-Through Certificates, Series 1999-I, Cl. ECFD, 5.827%, 1/25/29 1,2 3,370,016 438,102 - ----------------------------------------------------------------------------- Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2006-2, Cl. 2A2, 2.583%, 7/1/36 1 1,250,000 1,202,582 - ----------------------------------------------------------------------------- Popular ABS Mortgage Pass-Through Trust 2005-6, Mtg. Pass-Through Certificates, Series 2005-6, Cl. A3, 5.68%, 1/25/36 1 720,000 719,003 - ----------------------------------------------------------------------------- RAMP Series 2006-RS4 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-RS4, Cl. A1, 2.563%, 7/25/36 1 4,867 4,828 - ----------------------------------------------------------------------------- RASC Series 2006-KS7 Trust, Home Equity Mtg. Asset-Backed Pass-Through Certificates, Series 2006-KS7, Cl. A2, 2.583%, 9/25/36 1 60,000 58,049 - ----------------------------------------------------------------------------- Structured Asset Investment Loan Trust, Mtg. Pass-Through Certificates, Series 2006-BNC3, Cl. A2, 2.523%, 9/25/36 1 675,749 665,499
F1 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ----------------------------------------------------------------------------- Tobacco Settlement Authority, Asset-Backed Securities, Series 2001-A, 6.79%, 6/1/10 $ 660,000 $ 680,882 - ----------------------------------------------------------------------------- Wells Fargo Home Equity Asset-Backed Securities 2006-2 Trust, Home Equity Asset-Backed Certificates, Series 2006-2, Cl. A2, 2.583%, 7/25/36 1 50,000 49,002 ------------- Total Asset-Backed Securities (Cost $14,322,183) 10,976,339 - ----------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS -- 91.0% - ----------------------------------------------------------------------------- GOVERNMENT AGENCY -- 55.5% - ----------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED -- 55.2% Federal Home Loan Mortgage Corp.: 4.50%, 5/15/19 2,210,896 2,156,776 5%, 8/15/33-12/15/34 4,044,549 3,901,173 6%, 7/15/17-3/15/33 7,851,423 8,022,944 6.50%, 4/15/18-4/1/34 1,305,883 1,359,076 7%, 8/15/16-10/1/31 5,398,849 5,709,025 8%, 4/1/16 498,969 530,408 9%, 8/1/22-5/1/25 143,374 157,337 10.50%, 11/14/20 5,320 6,094 - ----------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 151, Cl. F, 9%, 5/15/21 28,973 28,966 Series 1674, Cl. Z, 6.75%, 2/15/24 93,433 99,324 Series 2006-11, Cl. PS, 15.464%, 3/25/36 1 648,819 707,773 Series 2034, Cl. Z, 6.50%, 2/15/28 12,279 12,831 Series 2042, Cl. N, 6.50%, 3/15/28 35,057 36,625 Series 2043, Cl. ZP, 6.50%, 4/15/28 1,016,259 1,065,256 Series 2046, Cl. G, 6.50%, 4/15/28 104,649 110,012 Series 2053, Cl. Z, 6.50%, 4/15/28 15,137 15,894 Series 2055, Cl. ZM, 6.50%, 5/15/28 21,312 22,170 Series 2066, Cl. Z, 6.50%, 6/15/28 2,017,224 2,111,946 Series 2080, Cl. Z, 6.50%, 8/15/28 14,622 15,359 Series 2195, Cl. LH, 6.50%, 10/15/29 1,152,833 1,208,000 Series 2220, Cl. PD, 8%, 3/15/30 5,095 5,492 Series 2326, Cl. ZP, 6.50%, 6/15/31 397,893 417,977 Series 2435, Cl. EQ, 6%, 5/15/31 45,694 46,761 Series 2461, Cl. PZ, 6.50%, 6/15/32 1,420,836 1,509,298 Series 2470, Cl. LF, 3.471%, 2/15/32 1 18,060 18,379 Series 2500, Cl. FD, 2.971%, 3/15/32 1 289,678 287,916 Series 2526, Cl. FE, 2.871%, 6/15/29 1 479,786 477,574 Series 2538, Cl. F, 3.071%, 12/15/32 1 2,823,563 2,833,699 Series 2551, Cl. FD, 2.871%, 1/15/33 1 357,595 355,437 Series 2641, Cl. CE, 3.50%, 9/15/25 22,720 22,642 Series 2676, Cl. KY, 5%, 9/15/23 665,000 648,611 Series 2727, Cl. UA, 3.50%, 10/15/22 8,848 8,841 Series 2736, Cl. DB, 3.30%, 11/15/26 107,545 106,881 Series 2750, Cl. XG, 5%, 2/1/34 130,000 122,378 Series 2777, Cl. PJ, 4%, 5/15/24 8,766 8,772
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Continued Series 2890, Cl. PE, 5%, 11/1/34 $ 130,000 $ 121,770 Series 2936, Cl. PE, 5%, 2/1/35 69,000 64,529 Series 2939, Cl. PE, 5%, 2/15/35 247,000 230,760 Series 3025, Cl. SJ, 15.689%, 8/15/35 1 138,810 153,226 Series 3035, Cl. DM, 5.50%, 11/15/25 72,252 73,233 Series 3094, Cl. HS, 15.322%, 6/15/34 1 387,272 418,454 Series 3138, Cl. PA, 5.50%, 2/15/27 70,741 72,074 - ----------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 176, Cl. IO, 14.772%, 6/1/26 3 491,795 131,201 Series 183, Cl. IO, 13.737%, 4/1/27 3 777,273 174,149 Series 184, Cl. IO, 19.579%, 12/1/26 3 847,025 225,562 Series 192, Cl. IO, 14.847%, 2/1/28 3 209,491 54,136 Series 200, Cl. IO, 14.651%, 1/1/29 3 258,035 68,920 Series 2003-26, Cl. DI, 13.662%, 4/25/33 3 41,258 9,619 Series 205, Cl. IO, 13.009%, 9/1/29 3 39,752 11,215 Series 206, Cl. IO, (4.558)%, 12/1/29 3 492,088 138,739 Series 2074, Cl. S, 28.952%, 7/17/28 3 7,935 1,127 Series 2079, Cl. S, 35.257%, 7/17/28 3 13,095 1,774 Series 2130, Cl. SC, 28.009%, 3/15/29 3 534,748 54,950 Series 216, Cl. IO, 13.425%, 12/1/31 3 342,887 97,711 Series 224, Cl. IO, 10.237%, 3/1/33 3 1,057,155 280,583 Series 243, Cl. 6, 8.293%, 12/15/32 3 634,732 188,575 Series 2526, Cl. SE, 28.351%, 6/15/29 3 21,668 2,536 Series 2796, Cl. SD, 38.692%, 7/15/26 3 861,278 81,941 Series 2802, Cl. AS, 75.191%, 4/15/33 3 968,373 73,878 Series 2819, Cl. S, 32.13%, 6/15/34 3 174,576 18,064 Series 2920, Cl. S, 44.586%, 1/15/35 3 3,295,749 300,266 Series 3000, Cl. SE, 76.037%, 7/15/25 3 3,945,109 266,580 Series 3004, Cl. SB, 99.999%, 7/15/35 3 198,218 12,722 Series 3110, Cl. SL, 99.999%, 2/15/26 3 558,072 39,256 - ----------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security: Series 176, Cl. PO, 4.247%, 6/1/26 4 200,365 161,385 Series 192, Cl. PO, 5.893%, 2/1/28 4 209,490 163,481 - ----------------------------------------------------------------------------- Federal National Mortgage Assn.: 4.50%, 5/25/18-8/1/20 2,198,367 2,150,176 4.50%, 7/1/22 5 16,960,000 16,392,892 5%, 12/1/17-8/25/34 24,633,639 24,456,245 5%, 7/1/22-7/1/37 5 26,554,000 25,737,255 5%, 6/1/33 6 3,925,455 3,791,795 5.296%, 10/1/36 541,929 550,827 5.50%, 1/25/33-11/1/34 23,640,596 23,453,522 5.50%, 7/1/22-7/1/37 5 29,358,000 29,013,884 5.50%, 8/25/33 6 345,231 342,365 6%, 7/25/24-11/1/33 10,347,847 10,521,361 6%, 7/1/22 5 4,375,000 4,485,058 6.50%, 2/25/09-11/25/31 9,430,527 9,822,526
F2 | OPPENHEIMER CORE BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn.: Continued 6.50%, 8/25/17 6 $ 379,049 $ 395,486 7%, 11/25/13-7/25/35 3,740,176 3,946,273 7.50%, 1/1/33 20,603 22,256 8%, 5/25/17 3,082 3,307 8.50%, 7/1/32 48,206 53,104 - ----------------------------------------------------------------------------- Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Trust 1989-17, Cl. E, 10.40%, 4/25/19 46,448 50,836 Trust 1993-87, Cl. Z, 6.50%, 6/25/23 1,200,719 1,245,553 Trust 1998-58, Cl. PC, 6.50%, 10/25/28 1,016,735 1,056,392 Trust 1998-61, Cl. PL, 6%, 11/25/28 553,191 569,421 Trust 1999-54, Cl. LH, 6.50%, 11/25/29 783,006 808,814 Trust 2001-44, Cl. QC, 6%, 9/25/16 63,296 65,801 Trust 2001-51, Cl. OD, 6.50%, 10/25/31 57,424 60,421 Trust 2001-70, Cl. LR, 6%, 9/25/30 76,600 77,019 Trust 2001-74, Cl. QE, 6%, 12/25/31 1,681,004 1,729,572 Trust 2001-82, Cl. ZA, 6.50%, 1/25/32 519,160 543,059 Trust 2002-12, Cl. PG, 6%, 3/25/17 29,820 31,019 Trust 2002-9, Cl. PC, 6%, 3/25/17 1,236,030 1,285,764 Trust 2003-130, Cl. CS, 9.135%, 12/25/33 1 376,239 363,166 Trust 2003-23, Cl. EQ, 5.50%, 4/25/23 137,000 136,000 Trust 2003-28, Cl. KG, 5.50%, 4/25/23 3,964,000 3,970,715 Trust 2003-84, Cl. AJ, 3%, 4/25/13 10,886 10,866 Trust 2003-84, Cl. PW, 3%, 6/25/22 16,509 16,473 Trust 2004-101, Cl. BG, 5%, 1/25/20 1,975,000 1,972,614 Trust 2004-W9, Cl. 2A2, 7%, 2/25/44 534,941 568,341 Trust 2005-100, Cl. BQ, 5.50%, 11/25/25 1,160,000 1,156,441 Trust 2005-117, Cl. LA, 5.50%, 12/25/27 157,806 160,396 Trust 2005-59, Cl. NQ, 10.669%, 5/25/35 1 690,387 666,392 Trust 2006-110, Cl. PW, 5.50%, 5/25/28 203,976 207,824 Trust 2006-46, Cl. SW, 15.097%, 6/25/36 1 488,874 524,181 Trust 2006-50, Cl. KS, 15.098%, 6/25/36 1 1,116,399 1,169,533 Trust 2006-50, Cl. SK, 15.098%, 6/25/36 1 415,067 434,366 Trust 2006-64, Cl. MD, 5.50%, 7/25/36 4,671,000 4,588,625 - ----------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-61, Cl. SH, 41.432%, 11/18/31 3 67,423 8,860 Trust 2001-63, Cl. SD, 30.441%, 12/18/31 3 20,022 2,120 Trust 2001-65, Cl. S, 40.719%, 11/25/31 3 1,691,637 224,121 Trust 2001-68, Cl. SC, 26.155%, 11/25/31 3 13,815 1,710 Trust 2001-81, Cl. S, 26.488%, 1/25/32 3 418,061 52,722
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued Trust 2002-28, Cl. SA, 28.056%, 4/25/32 3 $ 10,725 $ 1,227 Trust 2002-38, Cl. IO, 32.783%, 4/25/32 3 23,513 1,922 Trust 2002-39, Cl. SD, 24.198%, 3/18/32 3 15,548 1,787 Trust 2002-47, Cl. NS, 24.932%, 4/25/32 3 1,067,221 128,535 Trust 2002-48, Cl. S, 26.758%, 7/25/32 3 18,093 2,129 Trust 2002-51, Cl. S, 25.185%, 8/25/32 3 979,713 118,437 Trust 2002-52, Cl. SD, 22.977%, 9/25/32 3 1,094,286 126,550 Trust 2002-52, Cl. SL, 26.902%, 9/25/32 3 11,085 1,328 Trust 2002-53, Cl. SK, 23.86%, 4/25/32 3 54,173 6,427 Trust 2002-56, Cl. SN, 28.837%, 7/25/32 3 24,670 2,922 Trust 2002-60, Cl. SM, 38.567%, 8/25/32 3 232,559 21,347 Trust 2002-7, Cl. SK, 41.226%, 1/25/32 3 111,282 11,459 Trust 2002-77, Cl. BS, 33.422%, 12/18/32 3 139,187 16,172 Trust 2002-77, Cl. IS, 29.811%, 12/18/32 3 40,060 4,934 Trust 2002-77, Cl. JS, 33.35%, 12/18/32 3 240,149 28,281 Trust 2002-77, Cl. SA, 33.473%, 12/18/32 3 222,389 27,128 Trust 2002-77, Cl. SH, 29.782%, 12/18/32 3 525,804 54,566 Trust 2002-84, Cl. SA, 42.033%, 12/25/32 3 1,498,799 191,717 Trust 2002-9, Cl. MS, 25.859%, 3/25/32 3 20,580 2,535 Trust 2002-90, Cl. SN, 38.565%, 8/25/32 3 119,640 10,933 Trust 2002-90, Cl. SY, 41.146%, 9/25/32 3 75,012 7,379 Trust 2003-118, Cl. S, 38.187%, 12/25/33 3 3,272,208 500,244 Trust 2003-33, Cl. SP, 42.825%, 5/25/33 3 1,576,223 230,444 Trust 2003-4, Cl. S, 39.262%, 2/25/33 3 1,044,137 159,538 Trust 2004-54, Cl. DS, 28.703%, 11/25/30 3 803,460 68,953 Trust 2005-19, Cl. SA, 42.104%, 3/25/35 3 8,083,866 594,196 Trust 2005-40, Cl. SA, 41.576%, 5/25/35 3 1,820,663 145,575
F3 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued Trust 2005-40, Cl. SB, 53.431%, 5/25/35 3 $ 84,685 $ 6,806 Trust 2005-6, Cl. SE, 50.288%, 2/25/35 3 2,339,738 184,392 Trust 2005-71, Cl. SA, 52.946%, 8/25/25 3 2,457,152 219,457 Trust 2005-87, Cl. SE, 99.999%, 10/25/35 3 4,702,640 313,009 Trust 2005-87, Cl. SG, 79.337%, 10/25/35 3 4,727,304 458,333 Trust 2006-33, Cl. SP, 61.099%, 5/25/36 3 3,985,580 447,211 Trust 2006-42, Cl. CI, 33.62%, 6/25/36 3 4,676,597 438,361 Trust 221, Cl. 2, 18.764%, 5/1/23 3 13,582 3,617 Trust 222, Cl. 2, 19.714%, 6/1/23 3 1,716,721 468,704 Trust 240, Cl. 2, 22.407%, 9/1/23 3 2,092,145 596,363 Trust 252, Cl. 2, 18.397%, 11/1/23 3 1,323,052 375,521 Trust 273, Cl. 2, 17.538%, 8/1/26 3 386,679 105,915 Trust 294, Cl. 2, 10.938%, 2/1/28 3 148,083 41,640 Trust 301, Cl. 2, 7.84%, 4/1/29 3 18,676 4,763 Trust 303, Cl. IO, (0.443)%, 11/1/29 3 219,793 62,717 Trust 319, Cl. 2, 13.32%, 2/1/32 3 372,989 96,623 Trust 321, Cl. 2, 8.537%, 4/1/32 3 4,049,340 1,042,191 Trust 324, Cl. 2, 7.739%, 7/1/32 3 70,178 18,153 Trust 331, Cl. 5, 9.179%, 2/1/33 3 58,011 13,002 Trust 331, Cl. 9, 15.582%, 2/1/33 3 926,251 205,303 Trust 334, Cl. 12, 5.277%, 2/1/33 3 100,556 22,621 Trust 334, Cl. 17, 22.408%, 2/1/33 3 635,814 163,796 Trust 334, Cl. 5, 10.952%, 5/1/33 3 69,404 16,621 Trust 339, Cl. 12, 7.81%, 7/1/33 3 1,282,500 323,919 Trust 339, Cl. 7, 6.596%, 7/1/33 3 3,413,980 801,788 Trust 342, Cl. 2, 12.53%, 9/1/33 3 256,269 68,936 Trust 343, Cl. 13, 8.358%, 9/1/33 3 1,033,697 259,977 Trust 344, Cl. 2, 10.815%, 12/1/33 3 6,626,154 1,784,437 Trust 345, Cl. 9, 8.72%, 1/1/34 3 1,419,184 354,504 Trust 362, Cl. 12, 7.296%, 8/1/35 3 1,856,624 438,668 Trust 362, Cl. 13, 7.243%, 8/1/35 3 1,028,555 243,066 Trust 364, Cl. 15, 9.463%, 9/1/35 3 71,370 16,865 Trust 364, Cl. 16, 9.622%, 9/1/35 3 1,318,179 329,109 Trust 365, Cl. 16, 13.887%, 3/1/36 3 2,039,620 493,802 - ------------------------------------------------------------------------------ Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security: Trust 1993-184, Cl. M, 4.802%, 9/25/23 4 503,710 404,444 Trust 324, Cl. 1, 5.566%, 7/1/32 4 17,524 13,461 -------------- 230,042,292 - ------------------------------------------------------------------------------ GNMA/GUARANTEED -- 0.3% Government National Mortgage Assn.: 7%, 1/30/09-3/15/26 82,918 88,390 8.50%, 8/1/17-12/15/17 217,955 237,981
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ GNMA/GUARANTEED Continued Government National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 1999-32, Cl. ZB, 8%, 9/16/29 $ 122,174 $ 132,767 Series 2000-7, Cl. Z, 8%, 1/16/30 56,903 61,988 - ------------------------------------------------------------------------------ Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 1998-19, Cl. SB, 28.17%, 7/16/28 3 26,271 3,569 Series 2001-21, Cl. SB, 42.57%, 1/16/27 3 995,308 92,708 Series 2002-15, Cl. SM, 36.868%, 2/16/32 3 1,068,818 98,234 Series 2004-11, Cl. SM, 23.293%, 1/17/30 3 699,030 76,342 Series 2006-47, Cl. SA, 86.875%, 8/16/36 3 5,575,001 481,289 -------------- 1,273,268 - ------------------------------------------------------------------------------ NON-AGENCY -- 35.5% - ------------------------------------------------------------------------------ COMMERCIAL -- 14.9% Asset Securitization Corp., Commercial Interest-Only Stripped Mtg.-Backed Security, Series 1997-D4, Cl. PS1, 2.188%, 4/14/29 3 13,317,022 451,748 - ------------------------------------------------------------------------------ Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2006-1, Cl. AM, 5.421%, 9/1/45 4,070,000 3,730,941 - ------------------------------------------------------------------------------ Banc of America Funding Corp., Mtg. Pass-Through Certificates, Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 1,259,603 1,262,596 - ------------------------------------------------------------------------------ Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-8, Cl. 5A1, 6.50%, 5/25/32 1,015,862 1,036,040 - ------------------------------------------------------------------------------ Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, (6.501)%, 6/22/24 3 9,310,988 270,975 - ------------------------------------------------------------------------------ ChaseFlex Trust 2006-2, Multiclass Mtg. Pass-Through Certificates, Series 2006-2, Cl. A1B, 2.493%, 8/25/08 1 12,213 11,914 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2005-17, Mtg. Pass-Through Certificates, Series 2005-17, Cl. 1A8, 5.50%, 9/1/35 80,000 73,596
F4 | OPPENHEIMER CORE BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ COMMERCIAL Continued Citigroup Mortgage Loan Trust, Inc. 2006-WF1, Asset-Backed Pass-Through Certificates, Series 2006-WF1, Cl. A2B, 5.536%, 3/1/36 $ 218,196 $ 218,132 - ------------------------------------------------------------------------------ Citigroup/Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. A2B, 5.205%, 12/11/49 1,630,000 1,587,543 - ------------------------------------------------------------------------------ CitiMortgage Alternative Loan Trust 2006-A5, Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 2006-A5, Cl. 1A1, 2.883%, 10/25/36 1 2,921,904 2,492,013 Series 2006-A5, Cl. 1A13, 2.933%, 10/25/36 1 1,522,144 1,272,102 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2007-8CB, Mtg. Pass-Through Certificates, Series 2007-8CB, Cl. A1, 5.50%, 5/25/37 151,186 139,963 - ------------------------------------------------------------------------------ Deutsche Alt-A Securities Mortgage Loan Trust, Mtg. Pass-Through Certificates: Series 2006-AB2, Cl. A7, 5.961%, 6/25/36 569,749 564,634 Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 62,221 61,281 Series 2006-AB3, Cl. A7, 6.36%, 7/1/36 195,621 192,490 - ------------------------------------------------------------------------------ First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35 786,745 696,535 - ------------------------------------------------------------------------------ First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 889,013 859,609 - ------------------------------------------------------------------------------ GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations, Series 2004-C3, Cl. A2, 4.433%, 7/10/39 50,000 49,908 - ------------------------------------------------------------------------------ Greenwich Capital Commercial Funding Corp., Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A2, 5.381%, 3/10/39 4,310,000 4,220,303 - ------------------------------------------------------------------------------ Greenwich Capital Commercial Mortgage 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. A4, 5.736%, 8/1/17 1,890,000 1,790,539 - ------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ COMMERCIAL Continued JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2005-LDP4, Cl. AM, 4.999%, 10/1/42 $ 1,110,000 $ 1,036,801 Series 2007-LDPX, Cl. A2S, 5.305%, 1/15/49 3,950,000 3,848,898 Series 2007-LD12, Cl. A2, 5.827%, 2/15/51 1,080,000 1,067,472 Series 2007-LD11, Cl. A2, 5.992%, 6/15/49 1 110,000 109,133 Series 2008-C2, Cl. A4, 6.068%, 2/1/51 3,760,000 3,771,769 - ------------------------------------------------------------------------------ LB-UBS Commercial Mortgage Trust 2005-C7, Commercial Mtg. Pass-Through Certificates, Series 2005-C7, Cl. A2, 5.103%, 11/11/30 770,000 768,599 - ------------------------------------------------------------------------------ LB-UBS Commercial Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates: Series 2006-C1, Cl. A2, 5.084%, 2/11/31 2,320,000 2,300,392 Series 2006-C1, Cl. AM, 5.217%, 2/11/31 1 2,300,000 2,082,154 - ------------------------------------------------------------------------------ LB-UBS Commercial Mortgage Trust 2007-C1, Commercial Mtg. Pass-Through Certificates, Series 2007-C1, Cl. A2, 5.318%, 1/15/12 1,770,000 1,732,312 - ------------------------------------------------------------------------------ Lehman Brothers Commercial Conduit Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 1998-C1, Cl. IO, (1.369)%, 2/18/30 3 4,859,136 146,927 - ------------------------------------------------------------------------------ Lehman Structured Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 2002-GE1, Cl. A, 2.514%, 7/26/24 2 257,358 234,839 - ------------------------------------------------------------------------------ Mastr Alternative Loan Trust, CMO Pass-Through Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34 1,508,654 1,375,255 - ------------------------------------------------------------------------------ Mastr Asset Securitization Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 2.933%, 10/25/36 1 156,391 141,732 - ------------------------------------------------------------------------------ Merrill Lynch/Countrywide Commercial Mortgage Trust 2007-9, Commercial Mtg. Pass-Through Certificates, Series 2007-9, Cl. A4, 5.70%, 9/1/17 1,650,000 1,559,129 - ------------------------------------------------------------------------------ Nomura Asset Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 1998-D6, Cl. A1B, 6.59%, 3/15/30 1,364 1,370
F5 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ COMMERCIAL Continued Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 $ 96,000 $ 100,800 - ------------------------------------------------------------------------------ RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A114, 5.75%, 4/25/37 1,259,401 1,207,466 - ------------------------------------------------------------------------------ Residential Asset Securitization Trust 2006-A9CB, Mtg. Pass-Through Certificates, Series 2006-A9CB, Cl. A5, 6%, 9/25/36 1,711,187 1,693,951 - ------------------------------------------------------------------------------ Salomon Brothers Mortgage Securities VII, Inc., Interest-Only Commercial Mtg. Pass-Through Certificates, Series 1999-C1, Cl. X, 5.828%, 5/18/32 3 218,574,301 349,784 - ------------------------------------------------------------------------------ STARM Mortgage Loan Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.658%, 6/1/37 1 3,935,702 3,690,336 - ------------------------------------------------------------------------------ Structured Asset Securities Corp., Mtg. Pass-Through Certificates, Series 2002-AL1, Cl. B2, 3.45%, 2/25/32 2,280,137 1,106,370 - ------------------------------------------------------------------------------ Wachovia Bank Commercial Mortgage Trust 2006-C29, Commercial Mtg. Pass-Through Certificates, Series 2006-C29, Cl. A2, 5.272%, 11/15/48 370,000 364,157 - ------------------------------------------------------------------------------ Wachovia Mortgage Loan Trust LLC, Mtg. Pass-Through Certificates, Series 2007-A, Cl. 1A1, 5.996%, 3/1/37 1 1,554,800 1,534,422 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2006-AR8 Trust, Mtg, Pass-Through Certificates, Series 2006-AR8, Cl. 1A4, 5.882%, 8/1/46 1 3,842,246 3,722,035 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A2, 5.714%, 2/25/37 1,2 828,135 455,474 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY3 Trust, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 2A2, 5.665%, 3/1/37 1 2,146,394 1,560,756 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY4 Trust, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 5A1, 5.636%, 11/1/36 1 1,164,505 1,108,748 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 2A3, 5.658%, 5/1/37 1 1,213,117 1,132,108 - ------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ COMMERCIAL Continued Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A2, 4.013%, 12/1/34 1 $ 2,670,283 $ 2,635,535 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-U Trust, Mtg. Pass-Through Certificates, Series 2004-U, Cl. A1, 6.313%, 10/1/34 1 466,698 465,636 -------------- 62,287,222 - ------------------------------------------------------------------------------ MANUFACTURED HOUSING -- 1.6% Wells Fargo Mortgage-Backed Securities 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 6.099%, 9/25/36 1 3,071,672 2,938,435 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A5, 5.106%, 3/25/36 1 3,725,891 3,612,065 -------------- 6,550,500 - ------------------------------------------------------------------------------ MULTIFAMILY -- 8.6% Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2005-F, Cl. 2A3, 4.713%, 7/25/35 1 2,684,061 2,602,057 - ------------------------------------------------------------------------------ Bear Stearns ARM Trust 2006-4, Mtg. Pass-Through Certificates, Series 2006-4, Cl. 2A1, 5.794%, 10/25/36 1 1,469,847 1,305,356 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2003-46, Mtg. Pass-Through Certificates, Series 2003-46, Cl. 1A2, 4.13%, 1/19/34 1 1,741,267 1,727,500 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2005-HYB1, Mtg. Pass-Through Certificates, Series 2005-HYB1, Cl. 1A2, 4.995%, 3/25/35 1 2,501,714 2,376,628 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2007-HY1, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A1, 5.694%, 4/25/37 1 4,385,714 4,096,785 - ------------------------------------------------------------------------------ Citigroup Mortgage Loan Trust, Inc. 2006-AR5, Mtg. Pass-Through Certificates, Series 2006-AR5, Cl. 1A3A, 5.89%, 7/25/36 1 1,520,486 1,476,554 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-28CB, Mtg. Pass-Through Certificates, Series 2004-28CB, Cl. 2A4, 5.75%, 1/25/35 2,316,000 1,990,637 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-85CB, Mtg. Pass-Through Certificates, Series 2005-85CB, Cl. 2A3, 5.50%, 2/25/36 1,790,000 1,604,845
F6 | OPPENHEIMER CORE BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ MULTIFAMILY Continued GMAC Mortgage Corp. Loan Trust, Mtg. Pass-Through Certificates: Series 2005-AR4, Cl. 2A1, 5.297%, 7/19/35 1 $ 2,706,233 $ 2,338,021 Series 2004-J4, Cl. A7, 5.50%, 9/25/34 1,660,000 1,498,911 - ------------------------------------------------------------------------------ GSR Mortgage Loan Trust 2005-AR7, Mtg. Pass-Through Certificates, Series 2005-AR7, Cl. 3A1, 5.149%, 11/25/35 1 4,304,410 4,109,741 - ------------------------------------------------------------------------------ Merrill Lynch Mortgage Investors Trust 2007-2, Mtg. Pass-Through Certificates, Series 2007-2, Cl. 2A1, 5.995%, 6/25/37 1 3,271,228 3,145,033 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-AA Trust, Mtg. Pass-Through Certificates, Series 2004-AA, Cl. 2A, 4.993%, 12/25/34 1 881,563 857,756 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-S Trust, Mtg. Pass-Through Certificates, Series 2004-S, Cl. A1, 3.541%, 9/25/34 1 732,821 697,891 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2005-AR2 Trust, Mtg. Pass-Through Certificates, Series 2005-AR2, Cl. 2A2, 4.542%, 3/25/35 1 535,120 517,418 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2005-AR4 Trust, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 2A2, 4.526%, 4/25/35 1 898,902 860,981 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR10 Trust, Mtg. Pass-Through Certificates: Series 2006-AR10, Cl. 4A1, 5.561%, 7/25/36 1 1,825,987 1,768,889 Series 2006-AR10, Cl. 2A1, 5.646%, 7/25/36 1 1,389,844 1,346,054 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A6, 5.106%, 3/25/36 1 707,543 656,947 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 5.092%, 3/25/36 1 796,848 767,843 -------------- 35,745,847 - ------------------------------------------------------------------------------ OTHER -- 0.0% JPMorgan Mortgage Trust 2005-S2, Mtg. Pass-Through Certificates, Series 2005-S2, Cl. 3A1, 6.762%, 2/25/32 1 83,286 81,864 - ------------------------------------------------------------------------------ Salomon Brothers Mortgage Securities VI, Inc., Interest-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. B, 85.666%, 10/23/17 3 6,378 784
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ OTHER Continued Salomon Brothers Mortgage Securities VI, Inc., Principal-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. A, 4.516%, 10/23/17 4 $ 9,440 $ 9,055 -------------- 91,703 - ------------------------------------------------------------------------------ RESIDENTIAL -- 10.4% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-4, Cl. A4, 5.936%, 7/1/17 1 1,880,000 1,794,083 - ------------------------------------------------------------------------------ Chase Mortgage Finance Trust 2005-S1, Multiclass Mtg. Pass-Through Certificates, Series 2005-S1, Cl. 1A5, 5.50%, 5/25/35 1,000,000 918,372 - ------------------------------------------------------------------------------ CHL Mortgage Pass-Through Trust 2005-J4, Mtg. Pass-Through Certificates, Series 2005-J4, Cl. A7, 5.50%, 11/1/35 40,000 35,060 - ------------------------------------------------------------------------------ CitiMortgage Alternative Loan Trust 2006-A1, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2006-A1, Cl. 2A1, 5.25%, 3/1/21 1,391,329 1,335,576 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-24CB, Mtg. Pass-Through Certificates, Series 2004-24CB, Cl. 1A1, 6%, 11/1/34 1,536,665 1,441,061 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2004-28CB, Mtg. Pass-Through Certificates, Series 2004-28CB, Cl. 3A1, 6%, 1/1/35 1,224,214 1,114,474 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-18CB, Mtg. Pass-Through Certificates, Series 2005-18CB, Cl. A8, 5.50%, 5/25/36 2,420,000 2,067,407 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-J1, Mtg. Pass-Through Certificates, Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 2,120,990 1,868,085 - ------------------------------------------------------------------------------ CWALT Alternative Loan Trust 2005-J3, Mtg. Pass-Through Certificates, Series 2005-J3, Cl. 3A1, 6.50%, 9/25/34 1,850,610 1,782,582 - ------------------------------------------------------------------------------ LB-UBS Commercial Mortgage Trust 2007-C7, Commercial Mtg. Pass-Through Certificates, Series 2007-C7, Cl. A3, 5.866%, 9/11/45 4,370,000 4,178,252 - ------------------------------------------------------------------------------ Lehman XS Trust, Mtg. Pass-Through Certificates, Series 2005-10, Cl. 2A3B, 5.55%, 1/25/36 655,927 640,092
F7 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ RESIDENTIAL Continued Merrill Lynch Mortgage Investors Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 6.073%, 10/25/36 1 $ 110,596 $ 107,043 - ------------------------------------------------------------------------------ Morgan Stanley Mortgage Loan Trust 2006-AR, Mtg. Pass-Through Certificates, Series 2006-AR, Cl. 5A3, 5.427%, 6/25/36 1 1,110,000 1,045,733 - ------------------------------------------------------------------------------ RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33 653,733 636,455 - ------------------------------------------------------------------------------ RALI Series 2004-QS10 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2004-QS10, Cl. A3, 2.983%, 7/25/34 1 1,541,758 1,377,286 - ------------------------------------------------------------------------------ RALI Series 2006-QS13 Trust: Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A5, 6%, 9/25/36 112,860 109,770 Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 39,008 38,773 - ------------------------------------------------------------------------------ RALI Series 2006-QS5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS5, Cl. 2A2, 6%, 5/1/36 696,686 673,420 - ------------------------------------------------------------------------------ RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A28, 5.75%, 4/25/37 41,702 39,982 - ------------------------------------------------------------------------------ STARM Mortgage Loan Trust 2007-S1, Mtg. Pass-Through Certificates, Series 2007-S1, Cl. 3A1, 5.009%, 8/1/22 1 4,067,243 3,941,858 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 5.75%, 10/25/36 1 3,853,324 3,575,639 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 2A1, 6.13%, 8/25/36 1 3,725,259 3,657,012 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 4A1, 5.473%, 2/1/37 1 86,215 81,348 - ------------------------------------------------------------------------------ WaMu Mortgage Pass-Through Certificates 2007-HY2 Trust, Mtg. Pass-Through Certificates, Series 2007-HY2, Cl. 2A1, 6.611%, 11/1/36 1 1,337,729 1,263,857 - ------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------ RESIDENTIAL Continued WaMu Mortgage Pass-Through Certificates 2007-HY6 Trust, Mtg. Pass-Through Certificates, Series 2007-HY6, Cl. 2A1, 5.698%, 6/25/37 1 $ 2,533,620 $ 2,352,149 - ------------------------------------------------------------------------------ Washington Mutual Mortgage Pass-Through Certificates, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 1A8, 6%, 2/25/37 3,533,116 3,431,019 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2003-6 Trust, Mtg. Pass-Through Certificates, Series 2003-6, Cl. 1A1, 5%, 6/25/18 1,413,377 1,367,090 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A1, 4.013%, 12/1/34 1 1,113,497 1,099,008 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 4.365%, 9/1/34 1 505,780 492,442 - ------------------------------------------------------------------------------ Wells Fargo Mortgage-Backed Securities 2006-AR5 Trust, Mtg. Pass-Through Certificates, Series 2006-AR5, Cl. 2A2, 5.54%, 4/1/36 1,2 1,658,365 1,094,521 -------------- 43,559,449 -------------- Total Mortgage-Backed Obligations (Cost $ 381,203,760) 379,550,281 - ------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS -- 0.1% - ------------------------------------------------------------------------------ Resolution Funding Corp. Bonds, Residual Funding STRIPS, 5.218%, 1/15/21 7 (Cost $ 432,864) 825,000 455,337 - ------------------------------------------------------------------------------ CORPORATE BONDS AND NOTES -- 26.2% - ------------------------------------------------------------------------------ CONSUMER DISCRETIONARY -- 7.3% - ------------------------------------------------------------------------------ AUTOMOBILES -- 1.6% Ford Motor Credit Co., 9.75% Sr. Unsec. Nts., 9/15/10 4,080,000 3,559,608 - ------------------------------------------------------------------------------ General Motors Acceptance Corp., 8% Bonds, 11/1/31 3,185,000 2,077,833 - ------------------------------------------------------------------------------ Hyundai Motor Manufacturing Alabama LLC, 5.30% Sr. Unsec. Nts., 12/19/08 8 1,115,000 1,115,846 -------------- 6,753,287 - ------------------------------------------------------------------------------ HOTELS, RESTAURANTS & LEISURE -- 1.1% MGM Mirage, Inc., 6% Sr. Sec. Nts., 10/1/09 2,700,000 2,669,625 - ------------------------------------------------------------------------------ Park Place Entertainment Corp., 7.875% Sr. Sub. Nts., 3/15/10 9 350,000 320,250
F8 | OPPENHEIMER CORE BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE Continued Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625% Nts., 12/1/14 $ 1,765,000 $ 1,623,800 --------------- 4,613,675 - ---------------------------------------------------------------------------------- HOUSEHOLD DURABLES -- 1.0% Centex Corp., 5.80% Sr. Unsec. Nts., 9/15/09 2 1,440,000 1,375,200 - ---------------------------------------------------------------------------------- D.R. Horton, Inc., 8% Sr. Nts., 2/1/09 615,000 616,538 - ---------------------------------------------------------------------------------- Lennar Corp., 7.625% Sr. Unsec. Nts., 3/1/09 2,045,000 1,993,875 --------------- 3,985,613 - ---------------------------------------------------------------------------------- MEDIA -- 2.8% Belo Corp., 8% Sr. Unsec. Unsub. Nts., 11/1/08 2 2,825,000 2,853,069 - ---------------------------------------------------------------------------------- Chancellor Media CCU, 8% Sr. Unsec. Nts., 11/1/08 1,540,000 1,563,054 - ---------------------------------------------------------------------------------- Clear Channel Communications, Inc., 6.25% Nts., 3/15/11 1,370,000 1,161,764 - ---------------------------------------------------------------------------------- CSC Holdings, Inc., 7.25% Sr. Unsec. Nts., 7/15/08 1,635,000 1,639,088 - ---------------------------------------------------------------------------------- EchoStar DBS Corp., 5.75% Sr. Unsec. Nts., 10/1/08 2,445,000 2,451,113 - ---------------------------------------------------------------------------------- Tribune Co., 5.50% Nts., Series E, 10/6/08 1,427,000 1,402,028 - ---------------------------------------------------------------------------------- Univision Communications, Inc., 3.875% Sr. Unsec. Nts., 10/15/08 590,000 584,100 --------------- 11,654,216 - ---------------------------------------------------------------------------------- MULTILINE RETAIL -- 0.7% Dillard's, Inc., 6.625% Unsec. Nts., 11/15/08 2 930,000 931,163 - ---------------------------------------------------------------------------------- Macy's Retail Holdings, Inc., 4.80% Sr. Nts., 7/15/09 2,125,000 2,083,048 --------------- 3,014,211 - ---------------------------------------------------------------------------------- SPECIALTY RETAIL -- 0.1% Gap, Inc. (The), 10.05% Unsub. Nts., 12/15/08 1,2 466,000 477,068 - ---------------------------------------------------------------------------------- CONSUMER STAPLES -- 0.5% - ---------------------------------------------------------------------------------- FOOD & STAPLES RETAILING -- 0.5% Albertson's, Inc., 8% Sr. Unsec. Debs., 5/1/31 1,675,000 1,724,692 - ---------------------------------------------------------------------------------- Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 266,000 314,297 --------------- 2,038,989 - ---------------------------------------------------------------------------------- ENERGY--1.2% - ---------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--1.2% Buckeye Partners LP, 4.625% Sr. Nts., 7/15/13 745,000 712,039
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS Continued Energy Transfer Partners LP, 5.65% Sr. Unsec. Unsub. Nts., 8/1/12 $ 430,000 $ 434,101 - ---------------------------------------------------------------------------------- Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13 1,560,000 1,504,572 - ---------------------------------------------------------------------------------- PF Export Receivables Master Trust, 3.748% Sr. Nts., Series B, 6/1/13 8 963,699 958,285 - ---------------------------------------------------------------------------------- TEPPCO Partners LP, 6.125% Nts., 2/1/13 900,000 893,588 - ---------------------------------------------------------------------------------- Valero Logistics Operations LP, 6.05% Nts., 3/15/13 540,000 527,994 --------------- 5,030,579 - ---------------------------------------------------------------------------------- FINANCIALS--14.7% - ---------------------------------------------------------------------------------- CAPITAL MARKETS -- 2.8% Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 3,595,000 3,059,902 - ---------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc., 7.50% Sub. Nts., 5/11/38 4,725,000 4,400,133 - ---------------------------------------------------------------------------------- Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38 4,285,000 4,032,712 --------------- 11,492,747 - ---------------------------------------------------------------------------------- COMMERCIAL BANKS -- 4.0% Barclays Bank plc, 6.278% Perpetual Bonds 10 5,830,000 4,816,571 - ---------------------------------------------------------------------------------- HBOS plc, 6.413% Sub. Perpetual Bonds, Series A 8,10 6,600,000 4,630,890 - ---------------------------------------------------------------------------------- HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35 1 5,920,000 4,756,246 - ---------------------------------------------------------------------------------- Popular North America, Inc., 4.70% Nts., 6/30/09 2,485,000 2,455,160 --------------- 16,658,867 - ---------------------------------------------------------------------------------- CONSUMER FINANCE -- 0.5% SLM Corp.: 3.95% Nts., Series A, 8/15/08 220,000 218,535 4% Nts., 1/15/09 2,005,000 1,980,661 --------------- 2,199,196 - ---------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES -- 4.2% Bank of America Corp.: 8% Unsec. Perpetual Bonds, Series K 10 3,050,000 2,864,682 8.125% Perpetual Bonds, Series M 10 515,000 487,453 - ---------------------------------------------------------------------------------- Capmark Financial Group, Inc.: 3.366% Sr. Unsec. Nts., 5/10/10 1 700,000 539,874 5.875% Sr. Unsec. Nts., 5/10/12 1,290,000 910,990 - ---------------------------------------------------------------------------------- CIT Group Funding Co. of Canada, 4.65% Sr. Unsec. Nts., 7/1/10 9 1,235,000 1,033,615 - ---------------------------------------------------------------------------------- Citigroup, Inc.: 8.30% Jr. Sub. Bonds, 12/21/57 1 4,485,000 4,254,108 8.40% Perpetual Bonds, Series E 10 1,730,000 1,646,718
F9 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES Continued JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1 10 $ 3,625,000 $ 3,409,059 - ---------------------------------------------------------------------------------- Liberty Media Corp., 7.875% Sr. Nts., 7/15/09 580,000 588,630 - ---------------------------------------------------------------------------------- Liberty Media LLC, 7.75% Sr. Nts., 7/15/09 1,840,000 1,860,586 --------------- 17,595,715 - ---------------------------------------------------------------------------------- INSURANCE -- 3.2% American International Group, Inc., 6.25% Jr. Sub. Bonds, 3/15/37 345,000 271,358 - ---------------------------------------------------------------------------------- Axa SA, 6.379% Sub. Perpetual Bonds 8,10 5,105,000 4,114,222 - ---------------------------------------------------------------------------------- MBIA, Inc., 5.70% Sr. Unsec. Unsub. Nts., 12/1/34 1,055,000 424,997 - ---------------------------------------------------------------------------------- MetLife, Inc., 6.40% Jr. Unsec. Sub. Bonds, 12/15/66 1 3,875,000 3,400,510 - ---------------------------------------------------------------------------------- Prudential Holdings LLC, 8.695% Bonds, Series C, 12/18/23 8 2,400,000 2,797,490 - ---------------------------------------------------------------------------------- Prudential Insurance Co. of America, 8.30% Nts., 7/1/25 8 2,035,000 2,233,215 --------------- 13,241,792 - ---------------------------------------------------------------------------------- INDUSTRIALS -- 0.2% - ---------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES -- 0.2% MetLife Capital Trust X, 9.25% Sec. Bonds, 4/8/68 1 700,000 757,139 - ---------------------------------------------------------------------------------- INFORMATION TECHNOLOGY -- 0.4% - ---------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS -- 0.4% NCR Corp., 7.125% Sr. Unsec. Unsub. Nts., 6/15/09 1,700,000 1,724,060 - ---------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 1.0% - ---------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.0% Qwest Corp.: 5.625% Unsec. Nts., 11/15/08 250,000 250,625 8.875% Unsec. Unsub. Nts., 3/15/12 3,925,000 4,023,125 --------------- 4,273,750 - ---------------------------------------------------------------------------------- UTILITIES -- 0.9% - ---------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 0.9% Monongahela Power Co., 7.36% Unsec. Nts., Series A, 1/15/10 1,925,000 1,973,895 - ---------------------------------------------------------------------------------- Westar Energy, Inc., 7.125% Sr. Unsec. Nts., 8/1/09 1,820,000 1,877,023 --------------- 3,850,918 --------------- Total Corporate Bonds and Notes (Cost $117,561,371) 109,361,822
UNITS VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES -- 0.0% - ---------------------------------------------------------------------------------- Pathmark Stores, Inc. Wts., Strike Price $22.31, Exp. 9/19/10 2,11 (Cost $ 14,872) 5,408 $ 189 - ---------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $ 513,535,050) 500,343,968
PRINCIPAL AMOUNT - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED -- 0.4% 12 - ---------------------------------------------------------------------------------- Repurchase agreement (Principal Amount/Value $1,385,423 with a maturity value of $ 1,385,527) with Barclays Capital, 2.70%, dated 6/30/08, to be repurchased at $1,385,527 on 7/1/08, collateralized by U.S. Agency Mortgages, 2.90%-6%, 4/25/23-5/15/38, with a value of $1,413,131 (Cost $ 1,385,423) $ 1,385,423 1,385,423 - ---------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $ 514,920,473) 120.3% 501,729,391 - ---------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (20.3) (84,661,736) -------------------------------- NET ASSETS 100.0% $ 417,067,655 ================================
F10 | OPPENHEIMER CORE BOND FUND/ VA FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Represents the current interest rate for a variable or increasing rate security. 2. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $9,627,077, which represents 2.31% of the Fund's net assets. See Note 7 of accompanying Notes. 3. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $17,382,252 or 4.17% of the Fund's net assets as of June 30, 2008. 4. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $751,826 or 0.18% of the Fund's net assets as of June 30, 2008. 5. When-issued security or delayed delivery to be delivered and settled after June 30, 2008. See Note 1 of accompanying Notes. 6. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $1,330,403. See Note 5 of accompanying Notes. 7. Zero coupon bond reflects effective yield on the date of purchase. 8. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $15,849,948 or 3.80% of the Fund's net assets as of June 30, 2008. 9. Partial or fully-loaned security. See Note 8 of accompanying Notes. 10. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. 11. Non-income producing security. 12. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 8 of accompanying Notes. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1--quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2--inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3--unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS * - ----------------------------------------------------------------------------------- Level 1--Quoted Prices $ -- $ (117,997) Level 2--Other Significant Observable Inputs 492,921,054 (9,910,308) Level 3--Significant Unobservable Inputs 8,808,337 -- ---------------------------------- Total $ 501,729,391 $ (10,028,305) ==================================
* Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. The following issuer is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008 by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment advisor. There were no affiliate securities held by the Fund as of June 30, 2008. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ------------------------------------------------------------------------------------------------------------ Oppenheimer Institutional Money Market Fund, Cl,. E 4,105,793 104,208,341 108,314,134 --
DIVIDEND VALUE INCOME - ------------------------------------------------------------------------ Oppenheimer Institutional Money Market Fund, Cl. E $-- $ 138,897
F11 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - ------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - ------------------------------------------------------------------------------- FUTURES CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - -------------------------------------------------------------------------------
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------ U.S. Long Bonds Buy 306 9/19/08 $ 35,371,688 $ 285,547 U.S. Treasury Nts., 2 yr. Sell 503 9/30/08 106,235,172 (100,492) U.S. Treasury Nts., 5 yr. Buy 62 9/30/08 6,854,391 (21,683) U.S. Treasury Nts., 10 yr. Sell 574 9/19/08 65,391,156 (155,587) ----------------- $ 7,785 =================
- ------------------------------------------------------------------------------- CREDIT DEFAULT SWAPS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - -------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ---------------------------------------------------------------------------------------------------------------------------- Barclays Bank plc: American International Group, Inc. Sell $ 4,415 1.850% 9/20/08 $ -- $ 2,035 Capmark Financial Group, Inc. Sell 950 1.000 6/20/12 -- (248,009) Countrywide Home Loans, Inc. Sell 1,250 0.750 9/20/08 -- (15,528) Dillard's, Inc. Sell 750 1.900 12/20/08 -- (7,232) HCP, Inc. Sell 1,005 4.600 3/20/09 -- 1,024 iStar Financial, Inc. Sell 1,140 4.400 12/20/12 -- (94,342) Kohl's Corp. Buy 665 1.180 6/20/18 -- 7,126 Kohl's Corp. Sell 665 1.080 6/20/13 -- (3,549) Kohl's Corp. Sell 665 0.900 6/20/13 -- (8,778) Kohl's Corp. Buy 665 1.040 6/20/18 -- 14,004 Lehman Brothers Holdings, Inc. Sell 2,050 0.490 9/20/10 -- (104,741) Merrill Lynch & Co., Inc. Sell 4,265 0.680 9/20/08 -- 618 Morgan Stanley Sell 3,985 2.150 9/20/08 -- 14,701 Six Flags, Inc. Sell 1,075 8.250 12/20/08 -- (79,039) Toys "R" Us, Inc. Sell 1,000 1.450 9/20/08 -- (15,981) XL Capital Ltd. Sell 1,485 3.550 9/20/09 -- -- - ---------------------------------------------------------------------------------------------------------------------------- Credit Suisse International: ArvinMeritor, Inc. Sell 1,635 1.550 9/20/08 -- (18,781) CenturyTel, Inc. Buy 900 1.230 9/20/13 -- 19,067 Intelsat Ltd. Sell 1,075 3.450 9/20/08 -- 4,291 iStar Financial, Inc. Sell 165 4.000 12/20/12 -- (15,817) iStar Financial, Inc. Sell 410 12.000 3/20/09 -- 15,092 Morgan Stanley Sell 4,280 2.150 9/20/08 -- 15,789 Rite Aid Corp. Sell 530 7.500 3/20/09 -- 6,697 Saks, Inc. Sell 1,715 2.000 9/20/08 -- 1,748 Sprint Nextel Corp. Sell 2,940 6.300 3/20/09 -- 57,997 The Bear Stearns Sell 1,830 2.088 12/20/08 -- 798 Cos., Inc. The Goodyear Tire & Rubber Co. Sell 1,640 1.550 9/20/08 -- 171 TXU Corp. Sell 365 5.910 12/20/12 -- (2,429) TXU Corp. Sell 350 6.050 12/20/12 -- (679) TXU Corp. Sell 365 6.000 12/20/12 -- (1,323) Univision Communications, Inc. Sell 25 14.600 3/20/09 -- 1,377 Vornado Realty LP Sell 665 3.600 3/20/09 -- 15,729 Wachovia Corp. Sell 1,345 1.000 3/20/09 -- 89 Washington Mutual, Inc. Sell 770 6.500 12/20/08 -- (3,186) Washington Mutual, Inc. Sell 2,670 6.800 6/20/09 -- (23,940) - ---------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: ABX.HE.AA.06-2 Index Sell 450 0.170 5/25/46 53,996 (358,364) ABX.HE.AAA.06-2 Index Sell 40 0.110 5/25/46 -- (12,153) ABX.HE.AAA.06-2 Index Sell 40 0.110 5/25/46 -- (12,153)
F12 | OPPENHEIMER CORE BOND FUND/VA - ------------------------------------------------------------------------------- CREDIT DEFAULT SWAPS Continued - -------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: Continued Allied Waste North America, Inc. Sell $ 630 2.000% 9/20/09 $ -- $ (3,319) Allied Waste North America, Inc. Sell 990 2.000 9/20/09 -- (5,215) Ambac Assurance Corp. Sell 805 8.450 12/20/08 -- (68,510) Ambac Assurance Corp. Sell 1,655 4.550 9/20/08 -- (129,307) Ambac Assurance Corp. Sell 1,355 4.550 9/20/08 -- (105,868) CDX.NA.IG.10 Index Buy 5,325 1.550 6/20/13 118,155 (29,340) Cemex Sell 665 2.000 3/20/09 -- 144 Centex Corp. Sell 355 1.550 9/20/09 -- (9,090) CenturyTel, Inc. Buy 1,485 1.230 9/20/13 -- 31,461 Cit Group, Inc. Sell 125 5.000 3/20/09 14,375 (3,600) Countrywide Home Loans, Inc. Sell 1,150 3.250 9/20/08 -- (7,071) Dillard's, Inc. Sell 420 0.750 9/20/08 -- (4,040) Dow Jones CDX.NA.IG.7 Index Buy 3,600 0.400 12/20/11 (370) 141,746 Georgia-Pacific Corp. Sell 1,635 1.750 9/20/08 -- (6,614) Intelsat Ltd. Sell 430 2.850 9/20/08 -- 1,064 iStar Financial, Inc. Sell 2,025 2.925 12/20/08 -- (68,076) iStar Financial, Inc. Sell 1,175 3.000 12/20/08 -- (39,075) iStar Financial, Inc. Sell 180 4.320 12/20/12 -- (15,368) iStar Financial, Inc. Sell 1,005 12.000 3/20/09 -- 36,993 Jones Apparel Group, Inc. Sell 675 2.720 6/20/13 -- (13,271) Jones Apparel Group, Inc. Buy 675 2.635 6/20/18 -- 20,393 Kohl's Corp. Sell 675 1.180 6/20/13 -- (655) Kohl's Corp. Buy 675 1.300 6/20/18 -- 1,249 Lehman Brothers Holdings, Inc. Sell 2,230 1.410 9/20/08 -- (26,399) Lehman Brothers Holdings, Inc. Sell 90 2.070 3/20/09 -- 98 Levi Strauss & Co. Sell 935 1.000 9/20/08 -- 52 Levi Strauss & Co. Sell 700 0.900 9/20/08 -- (138) Liz Claiborne, Inc. Sell 2,485 3.250 6/20/09 -- 1,538 MBIA, Inc. Sell 1,025 0.520 9/20/08 -- (84,658) MBIA, Inc. Sell 1,020 0.600 9/20/08 -- (84,047) MBIA Insurance Corp. Sell 2,580 8.850 12/20/08 -- (451,962) Merrill Lynch & Co., Inc. Sell 300 1.650 9/20/08 -- 781 Owens-Illinois, Inc. Sell 900 1.250 9/20/08 -- 217 Prudential Financial, Inc. Sell 1,430 2.050 6/20/09 -- (546) Tenet Healthcare Corp. Sell 1,635 1.600 3/20/09 -- (15,941) The Bear Stearns Cos., Inc. Sell 4,195 2.350 9/20/08 -- (4,145) The Bear Stearns Cos., Inc. Sell 220 2.750 9/20/08 -- 5 Vornado Realty LP Sell 1,345 3.875 6/20/09 -- 34,617 Wachovia Corp. Sell 2,990 1.000 3/20/09 -- 199 Washington Mutual, Inc. Sell 255 4.500 12/20/08 -- (3,545) Washington Mutual, Inc. Sell 1,275 4.500 12/20/08 -- (17,723) XL Capital Ltd. Sell 1,675 3.550 9/20/09 -- (5,343) - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP: ABX.HE.AA.06-2 Index Sell 155 0.170 5/25/46 12,771 (123,221) ABX.HE.AA.06-2 Index Sell 760 0.170 5/25/46 300,182 (604,182) ABX.HE.AAA.06-2 Index Sell 20 0.110 5/25/46 -- (6,100) Capmark Financial Group,Inc. Sell 1,035 0.950 6/20/12 -- (271,602) First Data Corp. Sell 1,020 1.150 9/20/08 -- (5,490)
F13 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - ------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - ------------------------------------------------------------------------------- CREDIT DEFAULT SWAPS Continued - -------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: Amkor Technology, Inc. Sell $ 155 2.650% 9/20/08 $ -- $ 153 Citigroup, Inc. Sell 1,315 1.250 9/20/08 -- (40,506) Dole Food Co., Inc. Sell 1,645 3.880 9/20/08 -- (11,049) D.R. Horton, Inc. Sell 935 4.210 12/20/08 -- 1,363 First Data Corp. Sell 110 4.700 3/20/09 -- 2,254 General Mills, Inc. Sell 1,415 0.380 12/20/12 -- (1,005) iStar Financial, Inc. Sell 185 3.950 12/20/12 -- (18,037) K. Hovnanian Enterprises, Inc. Sell 635 6.750 9/20/08 -- (694) Morgan Stanley Sell 110 1.500 9/20/08 -- 225 Pulte Homes, Inc. Sell 1,625 2.750 9/20/09 -- (18,343) R.H. Donnelley Corp. Sell 1,465 9.000 3/20/09 -- 34,359 Sara Lee Corp. Buy 1,370 0.419 9/20/12 -- 2,809 Smurfit-Stone Container Enterprises, Inc. Sell 1,640 1.450 9/20/08 -- 307 Sprint Nextel Corp. Sell 1,060 6.300 3/20/09 -- 20,911 Univision Communications, Inc. Sell 140 5.000 6/20/09 15,400 (1,070) Univision Communications, Inc. Sell 360 5.000 6/20/09 21,600 (2,750) Univision Communications, Inc. Sell 350 5.000 6/20/09 35,000 (2,674) - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: ABX.HE.AA.06-2 Index Sell 930 0.170 5/25/46 602,100 (741,539) Ambac Assurance Corp. Sell 680 8.500 12/20/08 -- (57,718) Ambac Assurance Corp. Sell 780 4.650 9/20/08 -- (60,754) Cemex, Sociedad Anonima Bursatil De Capital Variable Sell 1,410 1.950 3/20/09 -- (214) Centex Corp. Sell 895 3.750 6/20/09 -- 680 CenturyTel, Inc. Buy 695 1.230 9/20/13 -- 14,724 Dillard's, Inc. Sell 40 3.250 9/20/09 -- 10 D.R. Horton, Inc. Sell 1,705 4.200 12/20/08 -- 2,401 General Mills, Inc. Sell 1,715 0.400 12/20/12 -- 194 Genworth Financial, Inc. Sell 2,030 3.250 3/20/09 -- 2,633 Harrah's Operating Co., Inc. Sell 1,540 5.000 3/20/10 77,000 (124,501) Limited Brands, Inc. Sell 670 2.900 6/20/13 -- (256) Limited Brands, Inc. Buy 670 2.930 6/20/18 -- (32,858) Liz Claiborne, Inc. Buy 1,000 2.920 6/20/18 -- 13,728 Liz Claiborne, Inc. Sell 1,000 3.150 6/20/13 -- 1,714 Liz Claiborne, Inc. Sell 325 2.750 6/20/13 -- (4,713) Liz Claiborne, Inc. Buy 325 2.600 6/20/18 -- 11,206 Macy's, Inc. Buy 1,345 2.540 6/20/18 -- (17,466) Macy's, Inc. Sell 670 2.570 6/20/13 -- 16,554 Macy's, Inc. Buy 670 2.500 6/20/18 -- (6,863) Macy's, Inc. Sell 1,345 2.610 6/20/13 -- 35,509 Merrill Lynch & Co., Inc. Sell 755 3.000 9/20/08 -- 4,547 Morgan Stanley Sell 4,275 0.640 9/20/08 -- (581) Nortel Networks Corp. Sell 265 1.850 9/20/08 -- 81 Prudential Financial, Inc. Sell 1,470 2.100 6/20/09 -- 157 R.H. Donnelley Corp. Sell 185 5.000 3/20/09 18,500 (7,125) Rite Aid Corp. Sell 550 5.000 9/20/09 16,500 (12,724) Sprint Nextel Corp. Sell 1,985 6.300 3/20/09 -- 39,158 The Hartford Financial Services Group, Inc. Sell 670 2.350 3/20/09 -- 6,660 The Hartford Financial Services Group, Inc. Sell 695 2.350 3/20/09 -- 6,909 Toys "R" Us, Inc. Sell 510 8.610 3/20/09 -- 14,115 Toys "R" Us, Inc. Sell 130 8.610 3/20/09 -- 3,598 Tribune Co. Sell 400 5.000 3/20/10 94,000 (104,388)
F14 | OPPENHEIMER CORE BOND FUND/VA - ------------------------------------------------------------------------------- CREDIT DEFAULT SWAPS Continued - -------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: Continued Univision Communications, Inc. Sell $ 155 3.000% 12/20/08 $ -- $ (5,613) Univision Communications, Inc. Sell 1,325 3.000 12/20/08 -- (47,979) Univision Communications, Inc. Sell 325 5.000 3/20/09 27,625 (11,350) Washington Mutual, Inc. Sell 775 6.800 6/20/09 -- (6,949) Washington Mutual, Inc. Sell 595 4.400 12/20/08 -- (8,561) Washington Mutual, Inc. Sell 75 7.500 6/20/09 -- (291) - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Capital Services, Inc.: ABX.HE.AA.06-2 Index Sell 155 0.170 5/25/46 12,383 (123,590) ABX.HE.AA.06-2 Index Sell 300 0.170 5/25/46 29,999 (239,206) ABX.HE.AAA.06-2 Index Sell 20 0.110 5/25/46 -- (6,184) Capmark Financial Group, Inc. Sell 405 5.000 6/20/12 109,350 (61,849) Countrywide Home Loans, Inc. Sell 800 0.750 9/20/08 -- (9,938) Countrywide Home Loans, Inc. Sell 3,070 0.420 6/20/09 -- (79,138) First Data Corp. Sell 620 1.350 9/20/08 -- (3,024) Ford Motor Co. Sell 2,065 7.150 12/20/16 -- (454,599) Ford Motor Co. Sell 980 7.050 12/20/16 -- (245,065) General Motors Corp. Sell 1,035 5.800 12/20/16 -- (349,265) General Motors Corp. Sell 1,000 5.750 12/20/16 -- (338,844) Harrah's Operating Co., Inc. Sell 720 2.200 9/20/08 -- (7,251) Inco Ltd. Buy 1,030 0.700 3/20/17 -- (971) Inco Ltd. Buy 1,015 0.630 3/20/17 -- 11,736 iStar Financial, Inc. Sell 170 4.860 12/20/12 -- (11,507) J.C. Penney Co., Inc. Sell 1,095 1.300 12/20/17 -- (33,456) J.C. Penney Co., Inc. Sell 1,060 1.070 12/20/17 -- (49,272) Jones Apparel Group, Inc. Sell 1,370 3.200 6/20/13 -- (382) Jones Apparel Group, Inc. Buy 1,370 2.970 6/20/18 -- 11,563 Kohl's Corp. Buy 1,590 0.660 12/20/17 -- 41,553 Kohl's Corp. Buy 1,640 0.870 12/20/17 -- 17,751 Lennar Corp. Sell 1,210 2.900 12/20/08 -- (21,896) Liz Claiborne, Inc. Sell 1,345 3.100 6/20/13 -- (421) Liz Claiborne, Inc. Buy 1,345 2.900 6/20/18 -- 20,209 Merrill Lynch & Co., Inc. Sell 1,270 3.250 9/20/08 -- 8,453 Merrill Lynch & Co., Inc. Sell 3,675 3.000 9/20/08 -- 22,135 Residential Capital LLC Sell 2,455 6.120 9/20/08 -- (43,527) Sara Lee Corp. Buy 1,760 0.418 9/20/12 -- 3,677 The Hartford Financial Services Group, Inc. Sell 665 2.400 3/20/09 -- 6,857 Toys "R" Us, Inc. Sell 640 2.550 9/20/08 -- (8,468) Vale Overseas Ltd. Sell 1,030 1.170 3/20/17 -- (41,406) Vale Overseas Ltd. Sell 1,015 1.100 3/20/17 -- (45,580) ------------------------ $1,558,566 $(5,933,092) ========================
- -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
NOTIONAL PAID BY RECEIVED BY TERMINATION SWAP COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------------------------------------------------------------------------------------------------------- Credit Suisse International $ 4,580,000 Three-Month USD BBA LIBOR 5.428% 8/7/17 $ 328,171 - ---------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG 3,870,000 Three-Month USD BBA LIBOR 5.445 8/8/17 282,313 ---------------- $ 610,484 ================
Abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate F15 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - ------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - ------------------------------------------------------------------------------- TOTAL RETURN SWAPS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - -------------------------------------------------------------------------------
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ----------------------------------------------------------------------------------------------------------------------------------- If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 15 Citibank NA $ 200,000 AAA 8.5+ Index basis points 8/1/08 $ (7,889) - ----------------------------------------------------------------------------------------------------------------------------------- If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus Deutsche Bank AG 2,700,000 AAA 8.5+ Index 15 basis points 8/1/08 (106,379) - ----------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The): If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8,500,000 AAA 8.5+ Index 8.5+ Index 3/1/09 (333,120) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 200 3,210,000 AAA 8.5+ Index basis points 3/1/09 (78,138) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 50 5,280,000 AAA 8.5+ Index basis points 12/1/08 (219,659) - ----------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 30 16,570,000 AAA 8.5+ Index basis points 8/1/08 (657,778) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 7,300,000 AAA Index Index plus 25 basis points 2/1/09 (150,650) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 15 16,000,000 AAA 8.5+ Index basis points 8/1/08 (633,416) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 2,980,000 AAA 8.5+ Index 8.5+ Index 3/1/09 (117,651) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 250 3,570,000 AAA 8.5+ Index basis points 3/1/09 (134,498) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 200 3,210,000 AAA 8.5+ Index basis points 3/1/09 (122,094)
F16 | OPPENHEIMER CORE BOND FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - ------------------------------------------------------------------------------- TOTAL RETURN SWAPS Continued - -------------------------------------------------------------------------------
NOTIONAL TERMINATION SWAP COUNTERPARTY AMOUNT PAID BY THE FUND RECEIVED BY THE FUND DATE VALUE - ----------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: Continued If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA $ 3,600,000 AAA 8.5+ Index 8.5+ Index 5/1/09 $ (142,129) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 20 7,300,000 AAA 8.5+ Index basis points 5/1/09 (289,260) - ----------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Bros U.S. CMBS AAA 8.5+ Index plus 150 5,050,000 8.5+ Index basis points 8/1/08 (183,439) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 900,000 AAA 8.5+ Index 8.5+ Index 8/1/08 (34,939) If positive, the If negative, the Total Return of the Total Return of the Lehman Brothers U.S. Lehman Brothers U.S. 7,300,000 CMBS AAA Index CMBS AAA Index 2/1/09 (130,488) If positive, the If negative, the Total Return of the Total Return of the Lehman Brothers U.S. Lehman Brothers U.S. 14,200,000 CMBS AAA Index CMBS AAA Index 3/1/09 (248,028) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 250 5,960,000 AAA 8.5+ Index basis points 3/1/09 (96,729) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index plus 350 5,860,000 AAA 8.5+ Index basis points 3/1/09 (51,602) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS AAA Brothers U.S. CMBS 8.5+ Index minus 50 17,290,000 AAA 8.5+ Index basis points 12/1/08 (674,175) If negative, the If positive, the Total Total Return of the Return of the Lehman Lehman Brothers U.S. Brothers U.S. CMBS CMBS AAA 8.5+ Index 4,420,000 AAA 8.5+ Index minus 65 basis points 12/1/08 (175,639) -------------- $(4,587,700) ==============
Abbreviation is as follows: CMBS Commercial Mortgage Backed Securities SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F17 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------- June 30, 2008 - ----------------------------------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------------------------------- Investments, at value (cost $514,920,473)--see accompanying statement of investments $ 501,729,391 - ----------------------------------------------------------------------------------------------------- Cash 669,738 - ----------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $ 376,135) 1,307,805 - ----------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 3,365,567 Investments sold 121,638 Shares of beneficial interest sold 78,095 Other 83,144 --------------- Total assets 507,355,378 - ----------------------------------------------------------------------------------------------------- LIABILITIES - ----------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 1,385,423 - ----------------------------------------------------------------------------------------------------- Swaps, at value (premiums received $ 1,182,431) 11,218,113 - ----------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased on a when-issued or delayed delivery basis 74,999,821 Shares of beneficial interest redeemed 2,352,424 Futures margins 117,997 Distribution and service plan fees 67,640 Shareholder communications 65,153 Trustees' compensation 17,754 Transfer and shareholder servicing agent fees 1,738 Other 61,660 --------------- Total liabilities 90,287,723 - ----------------------------------------------------------------------------------------------------- NET ASSETS $ 417,067,655 =============== - ----------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ----------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 40,031 - ----------------------------------------------------------------------------------------------------- Additional paid-in capital 461,156,871 - ----------------------------------------------------------------------------------------------------- Accumulated net investment income 14,473,827 - ----------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments (37,068,036) - ----------------------------------------------------------------------------------------------------- Net unrealized depreciation on investments (21,535,038) --------------- NET ASSETS $ 417,067,655 =============== - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ----------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $305,190,827 and 29,245,573 shares of beneficial interest outstanding) $ 10.44 - ----------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $111,876,828 and 10,785,831 shares of beneficial interest outstanding) $ 10.37
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F18 | OPPENHEIMER CORE BOND FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------- For the Six Months Ended June 30, 2008 - ------------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------------- Interest $ 13,676,827 - ------------------------------------------------------------------------------------- Fee income 457,011 - ------------------------------------------------------------------------------------- Dividends from affiliated companies 138,897 - ------------------------------------------------------------------------------------- Portfolio lending fees 9,663 --------------- Total investment income 14,282,398 - ------------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------------- Management fees 1,267,951 - ------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 136,714 - ------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,975 Service shares 4,988 - ------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 13,391 Service shares 4,871 - ------------------------------------------------------------------------------------- Trustees' compensation 7,944 - ------------------------------------------------------------------------------------- Custodian fees and expenses 1,309 - ------------------------------------------------------------------------------------- Administration service fees 750 - ------------------------------------------------------------------------------------- Other 51,470 --------------- Total expenses 1,494,363 Less reduction to custodian expenses (1,129) Less waivers and reimbursements of expenses (25,518) --------------- Net expenses 1,467,716 - ------------------------------------------------------------------------------------- NET INVESTMENT INCOME 12,814,682 - ------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ------------------------------------------------------------------------------------- Net realized gain (loss) on: Investments from unaffiliated companies (542,003) Closing and expiration of futures contracts (1,372,236) Swap contracts 2,180,214 --------------- Net realized gain 265,975 - ------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (12,322,918) Futures contracts 291,647 Swap contracts (7,233,504) --------------- Net change in unrealized depreciation (19,264,775) - ------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (6,184,118) ===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F19 | OPPENHEIMER CORE BOND FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - ---------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- OPERATIONS - ------------------------------------------------------------------------------------------------------------------- Net investment income $ 12,814,682 $ 20,943,854 - ------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) 265,975 (3,101,555) - ------------------------------------------------------------------------------------------------------------------- Net change in unrealized depreciation (19,264,775) (11,066) ----------------------------------- Net increase (decrease) in net assets resulting from operations (6,184,118) 17,831,233 - ------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (12,773,902) (18,342,384) Service shares (4,423,158) (2,404,569) ----------------------------------- (17,197,060) (20,746,953) - ------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (3,053,247) (37,703,583) Service shares 14,298,899 61,525,061 ----------------------------------- 11,245,652 23,821,478 - ------------------------------------------------------------------------------------------------------------------- NET ASSETS - ------------------------------------------------------------------------------------------------------------------- Total increase (decrease) (12,135,526) 20,905,758 - ------------------------------------------------------------------------------------------------------------------- Beginning of period 429,203,181 408,297,423 ----------------------------------- End of period (including accumulated net investment income of $14,473,827 and $18,856,205, respectively) $ 417,067,655 $ 429,203,181 ===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F20 | OPPENHEIMER CORE BOND FUND/VA FINANCIAL HIGHLIGHTS - ---------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 11.06 $ 11.16 $ 11.19 $ 11.50 $ 11.42 $ 11.31 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .32 1 .55 1 .53 1 .51 1 .43 1 .51 Net realized and unrealized gain (loss) (.49) (.08) .03 (.23) .18 .23 --------------------------------------------------------------------------------------- Total from investment operations (.17) .47 .56 .28 .61 .74 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.45) (.57) (.59) (.59) (.53) (.63) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 10.44 $ 11.06 $ 11.16 $ 11.19 $ 11.50 $ 11.42 ======================================================================================= - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 (1.35)% 4.39% 5.28% 2.59% 5.49% 6.78% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 305,191 $ 325,661 $ 367,106 $ 430,642 $ 504,244 $618,234 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 311,411 $ 345,723 $ 391,750 $ 466,033 $ 552,293 $691,931 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 6.13% 5.07% 4.83% 4.56% 3.82% 4.03% Total expenses 0.64% 4 0.68% 4 0.77% 4 0.76% 0.75% 0.73% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.63% 0.68% 0.77% 0.76% 0.75% 0.73% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 32% 5 89% 5 114% 5 111% 5 95% 5 101%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods of less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.65% Year Ended December 31, 2007 0.68% Year Ended December 31, 2006 0.77%
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - --------------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 369,944,492 $ 322,899,460 Year Ended December 31, 2007 $ 662,784,931 $ 678,316,693 Year Ended December 31, 2006 $ 1,168,229,255 $ 1,270,329,129 Year Ended December 31, 2005 $ 2,420,041,493 $ 2,423,498,913 Year Ended December 31, 2004 $ 2,841,348,053 $ 2,925,500,296
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F21 | OPPENHEIMER CORE BOND FUND/VA FINANCIAL HIGHLIGHTS Continued - ---------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 10.98 $ 11.10 $ 11.15 $ 11.47 $ 11.39 $ 11.30 - -------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income .31 1 .52 1 .49 1 .47 1 .40 1 .43 Net realized and unrealized gain (loss) (.49) (.08) .03 (.22) .18 .28 ----------------------------------------------------------------------------------- Total from investment operations (.18) .44 .52 .25 .58 .71 - -------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.43) (.56) (.57) (.57) (.50) (.62) - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 10.37 $ 10.98 $ 11.10 $ 11.15 $ 11.47 $ 11.39 =================================================================================== - -------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (1.44)% 4.09% 4.93% 2.33% 5.22% 6.56% - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 111,877 $ 103,542 $ 41,191 $ 11,110 $ 3,505 $ 3,835 - -------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 113,527 $ 70,116 $ 21,265 $ 7,213 $ 3,002 $ 3,903 - -------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 5.88% 4.85% 4.56% 4.29% 3.55% 3.73% Total expenses 0.89% 4 0.92% 4 1.06% 4 1.03% 0.99% 0.98% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.88% 0.92% 1.06% 1.03% 0.99% 0.98% - -------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 32% 5 89% 5 114% 5 111% 5 95% 5 101%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.90% Year Ended December 31, 2007 0.92% Year Ended December 31, 2006 1.06%
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 369,944,492 $ 322,899,460 Year Ended December 31, 2007 $ 662,784,931 $ 678,316,693 Year Ended December 31, 2006 $ 1,168,229,255 $ 1,270,329,129 Year Ended December 31, 2005 $ 2,420,041,493 $ 2,423,498,913 Year Ended December 31, 2004 $ 2,841,348,053 $ 2,925,500,296
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F22 | OPPENHEIMER CORE BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Core Bond Fund/VA (the "Fund"), is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's main investment objective is to seek a high level of current income. As a secondary objective, the Fund seeks capital appreciation when consistent with its primary objective. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F23 | OPPENHEIMER CORE BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED BASIS OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of June 30, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS ------------------------------------------------- Purchased securities $74,999,821
The Fund may enter into "forward roll" transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; counterparty credit risk. To assure its future payment of the purchase price, the Fund maintains internally designated assets with a market value equal to or greater than the payment obligation under the roll. F24 | OPPENHEIMER CORE BOND FUND/VA - -------------------------------------------------------------------------------- INVESTMENTS IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the collateral is required to be sufficient to cover payments of interest and principal. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October losses of $230,351 and unused capital loss carryforwards as follows:
EXPIRING ----------------------------- 2010 $ 29,885,554 2013 57,295 2014 6,081,496 2015 1,245,459 ------------ Total $ 37,269,804 ============
As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $37,234,180 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will utilize $265,975 of capital loss carryforward to offset realized capital gains. F25 | OPPENHEIMER CORE BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 514,998,903 Federal tax cost of other investments (130,966,603) -------------- Total federal tax cost $ 384,032,300 ============== Gross unrealized appreciation $ 9,919,013 Gross unrealized depreciation (31,532,482) -------------- Net unrealized depreciation $ (21,613,469) ==============
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. F26 | OPPENHEIMER CORE BOND FUND/VA - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 500,986 $ 5,371,618 1,273,250 $ 13,904,774 Dividends and/or distributions reinvested 1,288,991 12,773,902 1,704,683 18,342,384 Acquisition-Note 10 1,626,777 17,178,762 -- -- Redeemed (3,625,925) (38,377,529) (6,416,114) (69,950,741) --------------------------------------------------------------- Net decrease (209,171) $ (3,053,247) (3,438,181) $(37,703,583) =============================================================== - ----------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 3,003,383 $ 31,643,239 6,555,320 $ 70,649,282 Dividends and/or distributions reinvested 449,052 4,423,158 224,516 2,404,569 Redeemed (2,097,778) (21,767,498) (1,059,398) (11,528,790) --------------------------------------------------------------- Net increase 1,354,657 $ 14,298,899 5,720,438 $ 61,525,061 ===============================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES -------------------------------------------------------------------------------- Investment securities $109,090,843 $106,051,782 U.S. government and government agency obligations 357,637 -- To Be Announced (TBA) mortgage-related securities 369,944,492 322,899,460
F27 | OPPENHEIMER CORE BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE --------------------------------- Up to $1 billion 0.60% Over $1 billion 0.50
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,976 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager voluntarily reimbursed expenses of $15,729 and $6,021 for Non-Service and Service shares, respectively, due to the acquisition of Government Securities Portfolio. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $3,768 for IMMF management fees. - -------------------------------------------------------------------------------- 5. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. F28 | OPPENHEIMER CORE BOND FUND/VA Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. - -------------------------------------------------------------------------------- 6. SWAP CONTRACTS The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Risks of entering into swap contracts include credit, market and liquidity risk. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination. - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps on a single security, or a basket of securities. In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations. Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities). - -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between counterparties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received. F29 | OPPENHEIMER CORE BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. SWAP CONTRACTS Continued TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between counterparties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments. - -------------------------------------------------------------------------------- 7. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. - -------------------------------------------------------------------------------- 8. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of June 30, 2008, the Fund had on loan securities valued at $1,329,375. Collateral of $1,385,423 was received for the loans, all of which was received in cash and subsequently invested in approved instruments. - -------------------------------------------------------------------------------- 9. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. - -------------------------------------------------------------------------------- 10. ACQUISITION OF GOVERNMENT SECURITIES PORTFOLIO On April 30, 2008, the Fund acquired all of the net assets of Government Securities Portfolio, pursuant to an Agreement and Plan of Reorganization approved by the Government Securities Portfolio shareholders on April 25, 2008. The Fund issued (at an exchange ratio of 1.0341 for Non-Service of the Fund to one share of Government Securities Portfolio) 1,626,777 shares of beneficial interest for Non-Service, valued at $17,178,762 in exchange for the net assets, resulting in combined Non-Service net assets of $321,759,067 on April 30, 2008. The net assets acquired included net unrealized appreciation $284,900 and an unused capital loss carryforward of $194,746, potential utilization subject to tax limitations. The exchange qualified as a tax-free reorganization for federal income tax purposes. F30 | OPPENHEIMER CORE BOND FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER CORE BOND FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Management Oppenheimer Commentaries MidCap Fund/VA and A Series of Oppenheimer Variable Account Funds Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- Non-Service shares $ 1,000.00 $ 903.70 $ 3.37 - ---------------------------------------------------------------------------------------------------------- Service shares 1,000.00 902.30 4.65 HYPOTHETICAL (5% return before expenses) - ---------------------------------------------------------------------------------------------------------- Non-Service shares 1,000.00 1,021.33 3.57 - ---------------------------------------------------------------------------------------------------------- Service shares 1,000.00 1,019.99 4.93
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------------------------ Non-Service shares 0.71% - ------------------------------------------------------ Service shares 0.98
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER MIDCAP FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER MIDCAP FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- COMMON STOCKS--100.7% - ------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--17.7% - ------------------------------------------------------------------------------------------------------- DISTRIBUTORS--1.5% Central European Distribution Corp. 1 171,200 $ 12,694,480 - ------------------------------------------------------------------------------------------------------- DIVERSIFIED CONSUMER SERVICES--1.1% New Oriental Education & Technology Group, Inc., Sponsored ADR 1 158,300 9,247,886 - ------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--4.1% Burger King Holdings, Inc. 751,900 20,143,401 - ------------------------------------------------------------------------------------------------------- Las Vegas Sands Corp. 1 338,500 16,058,440 --------------- 36,201,841 - ------------------------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL--1.0% Liberty Media Corp.-Interactive, Series A 1 587,700 8,674,452 - ------------------------------------------------------------------------------------------------------- MEDIA--6.3% Cablevision Systems Corp. New York Group, Cl. A 1 490,600 11,087,560 - ------------------------------------------------------------------------------------------------------- Focus Media Holding Ltd., ADR 1 585,300 16,224,516 - ------------------------------------------------------------------------------------------------------- Liberty Global, Inc., Series C 1 681,200 20,681,232 - ------------------------------------------------------------------------------------------------------- Liberty Media Corp.-Entertainment, Series A 1 299,000 7,244,770 --------------- 55,238,078 - ------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL--2.1% Abercrombie & Fitch Co., Cl. A 183,300 11,489,244 - ------------------------------------------------------------------------------------------------------- GameStop Corp., Cl. A 1 181,800 7,344,720 --------------- 18,833,964 - ------------------------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--1.6% Polo Ralph Lauren Corp., Cl. A 226,300 14,207,114 - ------------------------------------------------------------------------------------------------------- ENERGY--13.4% - ------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--6.3% Cameron International Corp. 1 481,100 26,628,885 - ------------------------------------------------------------------------------------------------------- Dresser-Rand Group, Inc. 1 354,100 13,845,310 - ------------------------------------------------------------------------------------------------------- IHS, Inc., Cl. A 1 212,500 14,790,000 --------------- 55,264,195 - ------------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--7.1% Cabot Oil & Gas Corp., Cl. A 112,400 7,612,852 - ------------------------------------------------------------------------------------------------------- Petrohawk Energy Corp. 1 496,500 22,992,915 - ------------------------------------------------------------------------------------------------------- Range Resources Corp. 337,300 22,106,642 - ------------------------------------------------------------------------------------------------------- SandRidge Energy, Inc. 1 147,040 9,495,843 --------------- 62,208,252 - ------------------------------------------------------------------------------------------------------- FINANCIALS--9.8% - ------------------------------------------------------------------------------------------------------- CAPITAL MARKETS--3.5% Affiliated Managers Group, Inc. 1 186,800 16,823,208 Fortress Investment Group LLC, Cl. A 523,001 6,443,372 - ------------------------------------------------------------------------------------------------------- Lazard Ltd., Cl. A 221,800 7,574,470 --------------- 30,841,050 - ------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--3.1% IntercontinentalExchange, Inc. 1 77,600 8,846,400 - ------------------------------------------------------------------------------------------------------- MSCI, Inc., Cl. A 1 508,500 18,453,465 --------------- 27,299,865 - ------------------------------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS--1.9% Boston Properties, Inc. 183,000 16,510,260 - ------------------------------------------------------------------------------------------------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.3% Jones Lang LaSalle, Inc. 195,000 11,737,050 - ------------------------------------------------------------------------------------------------------- HEALTH CARE--14.3% - ------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--4.4% Bard (C.R.), Inc. 232,400 20,439,580 - ------------------------------------------------------------------------------------------------------- IDEXX Laboratories, Inc. 1 378,100 18,428,594 --------------- 38,868,174 - ------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--4.0% Coventry Health Care, Inc. 1 168,575 5,128,052 - ------------------------------------------------------------------------------------------------------- Healthways, Inc. 1 219,400 6,494,240 - ------------------------------------------------------------------------------------------------------- Schein (Henry), Inc. 1 331,900 17,116,083 - ------------------------------------------------------------------------------------------------------- VCA Antech, Inc. 1 213,100 5,919,918 --------------- 34,658,293 - ------------------------------------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--4.4% Covance, Inc. 1 346,600 29,814,532 - ------------------------------------------------------------------------------------------------------- Waters Corp. 1 139,600 9,004,200 --------------- 38,818,732 - ------------------------------------------------------------------------------------------------------- PHARMACEUTICALS--1.5% Shire Ltd., ADR 266,600 13,098,058 - ------------------------------------------------------------------------------------------------------- INDUSTRIALS--16.8% - ------------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE--4.3% Alliant Techsystems, Inc. 1 82,800 8,419,104 - ------------------------------------------------------------------------------------------------------- BE Aerospace, Inc. 1 157,100 3,658,859 - ------------------------------------------------------------------------------------------------------- Curtiss-Wright Corp. 201,500 9,015,110 - ------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 38,200 3,681,334 - ------------------------------------------------------------------------------------------------------- Rockwell Collins, Inc. 172,500 8,273,100 - ------------------------------------------------------------------------------------------------------- Spirit Aerosystems Holdings, Inc., Cl. A 1 230,200 4,415,236 --------------- 37,462,743 - ------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--1.8% C.H. Robinson Worldwide, Inc. 151,600 8,313,744
F1 | OPPENHEIMER MIDCAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS Continued Expeditors International of Washington, Inc. 169,400 $ 7,284,200 --------------- 15,597,944 - ------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--5.0% Clean Harbors, Inc. 1 92,500 6,573,050 - ------------------------------------------------------------------------------------------------------- EnergySolutions, Inc. 592,900 13,251,315 - ------------------------------------------------------------------------------------------------------- FTI Consulting, Inc. 1 104,800 7,174,608 - ------------------------------------------------------------------------------------------------------- Stericycle, Inc. 1 321,300 16,611,210 --------------- 43,610,183 - ------------------------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING--2.5% Foster Wheeler Ltd. 1 108,400 7,929,460 - ------------------------------------------------------------------------------------------------------- Quanta Services, Inc. 1 417,300 13,883,571 --------------- 21,813,031 - ------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--1.6% McDermott International, Inc. 1 230,400 14,259,456 - ------------------------------------------------------------------------------------------------------- MACHINERY--0.7% Oshkosh Corp. 285,400 5,904,926 - ------------------------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.9% Fastenal Co. 195,600 8,442,096 - ------------------------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--23.1% - ------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--0.7% F5 Networks, Inc. 1 207,300 5,891,466 - ------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--1.0% NetApp, Inc. 1 403,300 8,735,478 - ------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--4.0% Amphenol Corp., Cl. A 391,400 17,566,032 - ------------------------------------------------------------------------------------------------------- Trimble Navigation Ltd. 1 495,300 17,682,210 --------------- 35,248,242 - ------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.2% Akamai Technologies, Inc. 1 152,900 5,319,391 - ------------------------------------------------------------------------------------------------------- Omniture, Inc. 1 273,600 5,080,752 --------------- 10,400,143 - ------------------------------------------------------------------------------------------------------- IT SERVICES--6.5% Affiliated Computer Services, Inc., Cl. A 1 186,800 9,991,932 - ------------------------------------------------------------------------------------------------------- Cognizant Technology Solutions Corp. 1 600,200 19,512,502 - ------------------------------------------------------------------------------------------------------- SAIC, Inc. 1 1,031,100 21,457,191 - ------------------------------------------------------------------------------------------------------- VeriFone Holdings, Inc. 1 543,000 6,488,850 --------------- 57,450,475 - ------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.7% ASML Holding NV 277,600 6,773,440 NVIDIA Corp. 1 411,100 7,695,792 --------------- 14,469,232 - ------------------------------------------------------------------------------------------------------- SOFTWARE--8.0% Ansys, Inc. 1 309,200 14,569,504 - ------------------------------------------------------------------------------------------------------- Autodesk, Inc. 1 479,800 16,222,038 - ------------------------------------------------------------------------------------------------------- FactSet Research Systems, Inc. 265,750 14,977,670 - ------------------------------------------------------------------------------------------------------- Macrovision Solutions Corp. 1 588,909 8,810,079 - ------------------------------------------------------------------------------------------------------- Salesforce.com, Inc. 1 78,800 5,376,524 - ------------------------------------------------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 406,600 10,396,762 --------------- 70,352,577 - ------------------------------------------------------------------------------------------------------- MATERIALS--1.3% - ------------------------------------------------------------------------------------------------------- CHEMICALS--0.8% Intrepid Potash, Inc. 1 30,920 2,033,918 - ------------------------------------------------------------------------------------------------------- Lubrizol Corp. (The) 111,700 5,175,061 --------------- 7,208,979 - ------------------------------------------------------------------------------------------------------- METALS & MINING--0.5% Titanium Metals Corp. 334,400 4,678,256 - ------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--2.2% - ------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--2.2% Crown Castle International Corp. 1 505,260 19,568,720 - ------------------------------------------------------------------------------------------------------- UTILITIES--2.1% - ------------------------------------------------------------------------------------------------------- GAS UTILITIES--2.1% Questar Corp. 260,500 18,505,920 --------------- Total Common Stocks (Cost $ 854,514,091) 884,001,611 - ------------------------------------------------------------------------------------------------------- INVESTMENT COMPANY--0.4% - ------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 2,3 (Cost $3,237,612) 3,237,612 3,237,612 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $857,751,703) 101.1% 887,239,223 - ------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (1.1) (9,421,292) ----------------------------- NET ASSETS 100.0% $877,817,931 =============================
F2 | OPPENHEIMER MIDCAP FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Rate shown is the 7-day yield as of June 30, 2008. 3. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ----------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 35,791,815 146,895,743 179,449,946 3,237,612
DIVIDEND VALUE INCOME - ---------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $ 3,237,612 $ 236,732
- -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* --------------------------------------------------------------------------------------------------- Level 1--Quoted Prices $ 887,239,223 $ -- Level 2--Other Significant Observable Inputs -- -- Level 3--Significant Unobservable Inputs -- -- ---------------------------------- Total $ 887,239,223 $ -- ==================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F3 | OPPENHEIMER MIDCAP FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - -------------------------------------------------------------------------------- June 30, 2008 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- ASSETS - --------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $854,514,091) $ 884,001,611 Affiliated companies (cost $3,237,612) 3,237,612 ------------------ 887,239,223 - --------------------------------------------------------------------------------------------------------------- Cash 31,265 - --------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 2,006,862 Dividends 318,611 Shares of beneficial interest sold 152,407 Other 25,561 ------------------ Total assets 889,773,929 - --------------------------------------------------------------------------------------------------------------- LIABILITIES - --------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 9,269,080 Investments purchased 2,481,896 Shareholder communications 135,902 Distribution and service plan fees 25,872 Trustees' compensation 20,755 Transfer and shareholder servicing agent fees 1,742 Other 20,751 ------------------ Total liabilities 11,955,998 - --------------------------------------------------------------------------------------------------------------- NET ASSETS $ 877,817,931 ================== - --------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - --------------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 17,982 - --------------------------------------------------------------------------------------------------------------- Additional paid-in capital 1,297,512,683 - --------------------------------------------------------------------------------------------------------------- Accumulated net investment loss (1,844,124) - --------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments (447,356,130) - --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments 29,487,520 ------------------ NET ASSETS $ 877,817,931 ================== - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - --------------------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $837,779,224 and 17,147,993 shares of beneficial interest outstanding) $ 48.86 - --------------------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $40,038,707 and 833,722 shares of beneficial interest outstanding) $ 48.02
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F4 | OPPENHEIMER MIDCAP FUND/VA STATEMENT OF OPERATIONS Unaudited - -------------------------------------------------------------------------------- For the Six Months Ended June 30, 2008 - -------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - -------------------------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $14,130) $ 1,257,928 Affiliated companies 236,732 - -------------------------------------------------------------------------------------------------------------- Interest 1,835 ----------------- Total investment income 1,496,495 - -------------------------------------------------------------------------------------------------------------- EXPENSES - -------------------------------------------------------------------------------------------------------------- Management fees 3,197,350 - -------------------------------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 51,509 - -------------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,917 Service shares 4,993 - -------------------------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 30,084 Service shares 1,414 - -------------------------------------------------------------------------------------------------------------- Trustees' compensation 12,110 - -------------------------------------------------------------------------------------------------------------- Custodian fees and expenses 2,798 - -------------------------------------------------------------------------------------------------------------- Administration service fees 750 - -------------------------------------------------------------------------------------------------------------- Other 26,231 ----------------- Total expenses 3,332,156 Less reduction to custodian expenses (1,361) Less waivers and reimbursements of expenses (6,805) ----------------- Net expenses 3,323,990 - -------------------------------------------------------------------------------------------------------------- NET INVESTMENT LOSS (1,827,495) - -------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - -------------------------------------------------------------------------------------------------------------- Net realized gain on investments from unaffiliated companies 14,849,470 - -------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation on investments (112,874,122) - -------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (99,852,147) =================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F5 | OPPENHEIMER MIDCAP FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS - ---------------------------------------------------------------------------------------------------------------------------------- Net investment loss $ (1,827,495) $ (570,739) - ---------------------------------------------------------------------------------------------------------------------------------- Net realized gain 14,849,470 186,877,254 - ---------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (112,874,122) (117,202,651) ------------------------------------- Net increase (decrease) in net assets resulting from operations (99,852,147) 69,103,864 - ---------------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ---------------------------------------------------------------------------------------------------------------------------------- Net decrease in net assets resulting from beneficial interest transactions: Non-Service shares (69,392,929) (118,530,501) Service shares (2,648,494) (2,801,818) ------------------------------------- (72,041,423) (121,332,319) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS - ---------------------------------------------------------------------------------------------------------------------------------- Total decrease (171,893,570) (52,228,455) - ---------------------------------------------------------------------------------------------------------------------------------- Beginning of period 1,049,711,501 1,101,939,956 ------------------------------------- End of period (including accumulated net investment loss of $1,844,124 and $16,629, respectively) $ 877,817,931 $ 1,049,711,501 =====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F6 | OPPENHEIMER MIDCAP FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 54.07 $ 50.85 $ 49.39 $ 43.97 $ 36.71 $ 29.23 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.09) 1 (.02) 1 (.02) 1 (.12) 1 (.15) 1 (.15) Net realized and unrealized gain (loss) (5.12) 3.24 1.48 5.54 7.41 7.63 -------------------------------------------------------------------------------------------- Total from investment operations (5.21) 3.22 1.46 5.42 7.26 7.48 - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 48.86 $ 54.07 $ 50.85 $ 49.39 $ 43.97 $ 36.71 ============================================================================================ - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (9.63)% 6.33% 2.96% 12.33% 19.78% 25.59% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 837,779 $1,002,442 $1,054,809 $1,227,881 $1,209,459 $1,113,743 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 888,847 $1,045,592 $1,135,831 $1,177,979 $1,124,874 $1,041,584 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment loss (0.38)% (0.04)% (0.04)% (0.26)% (0.39)% (0.43)% Total expenses 0.71% 4,5,6 0.69% 4,5,6 0.69% 4,5 0.69% 6 0.69% 6 0.70% 6 - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 39% 112% 56% 32% 53% 154%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.71% Year Ended December 31, 2007 0.69% Year Ended December 31, 2006 0.69%
5. Waiver or reimbursement of indirect management fees less than 0.005%. 6. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F7 | OPPENHEIMER MIDCAP FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 53.22 $ 50.19 $ 48.87 $ 43.64 $ 36.54 $ 29.13 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) (.16) 1 (.17) 1 (.16) 1 (.25) 1 (.27) 1 -- 2 Net realized and unrealized gain (loss) (5.04) 3.20 1.48 5.48 7.37 7.41 ----------------------------------------------------------------------------------------- Total from investment operations (5.20) 3.03 1.32 5.23 7.10 7.41 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 48.02 $ 53.22 $ 50.19 $ 48.87 $ 43.64 $ 36.54 ========================================================================================= - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 (9.77)% 6.04% 2.70% 11.99% 19.43% 25.44% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 40,039 $ 47,270 $ 47,131 $ 36,551 $ 24,151 $ 11,698 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 41,935 $ 49,421 $ 44,273 $ 28,798 $ 17,579 $ 3,858 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment loss (0.65)% (0.31)% (0.33)% (0.54)% (0.68)% (0.72)% Total expenses 0.98% 5,6,7 0.96% 5,6,7 0.97% 5,6 0.97% 7 0.99% 7 0.95% 7 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 39% 112% 56% 32% 53% 154%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.98% Year Ended December 31, 2007 0.96% Year Ended December 31, 2006 0.97%
6. Waiver or reimbursement of indirect management fees less than 0.005%. 7. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F8 | OPPENHEIMER MIDCAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer MidCap Fund/VA (the "Fund"), is a separate series of Oppenheimer Variable Account Funds, an openend management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation by investing in "growth type" companies. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F9 | OPPENHEIMER MIDCAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net F10 | OPPENHEIMER MIDCAP FUND/VA realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund utilized $189,103,306 of capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: EXPIRING -------------------------------------------- 2009 $ 229,467,626 2010 230,224,822 ------------- Total $ 459,692,448 =============
As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $444,842,978 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will utilize $14,849,470 of capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 862,052,236 ================= Gross unrealized appreciation $ 129,973,182 Gross unrealized depreciation (104,786,195) ----------------- Net unrealized appreciation $ 25,186,987 =================
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. F11 | OPPENHEIMER MIDCAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------ NON-SERVICE SHARES Sold 489,438 $ 23,623,357 1,842,068 $ 99,805,796 Redeemed (1,879,866) (93,016,286) (4,045,787) (218,336,297) ----------------------------------------------------------------- Net decrease (1,390,428) $ (69,392,929) (2,203,719) $ (118,530,501) ================================================================= - ------------------------------------------------------------------------------------------------------------ SERVICE SHARES Sold 51,430 $ 2,498,732 158,587 $ 8,425,522 Redeemed (105,832) (5,147,226) (209,531) (11,227,340) ----------------------------------------------------------------- Net decrease (54,402) $ (2,648,494) (50,944) $ (2,801,818) =================================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows: F12 | OPPENHEIMER MIDCAP FUND/VA
PURCHASES SALES ------------------------------------------------------------------------ Investment securities $ 359,000,435 $ 387,721,293
- -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE -------------------------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Next $700 million 0.60 Over $1.5 billion 0.58
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,928 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $6,805 for IMMF management fees. - -------------------------------------------------------------------------------- 5. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F13 | OPPENHEIMER MIDCAP FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. F14 | OPPENHEIMER MIDCAP FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER MIDCAP FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management STRATEGIC BOND FUND/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - -------------------------------------------------------------------------------- Non-Service Shares $ 1,000.00 $ 1,022.20 $ 2.82 - -------------------------------------------------------------------------------- Service Shares 1,000.00 1,018.30 4.02 HYPOTHETICAL (5% return before expenses) - -------------------------------------------------------------------------------- Non-Service Shares 1,000.00 1,022.08 2.82 - -------------------------------------------------------------------------------- Service Shares 1,000.00 1,020.89 4.03
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------- Non-Service Shares 0.56% - ------------------------------------- Service Shares 0.80
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER STRATEGIC BOND FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - -------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- - ------------------------------------------------------------------- ASSET-BACKED SECURITIES--1.4% - ------------------------------------------------------------------- Ace Securities Corp. Home Equity Loan Trust, Asset-Backed Pass-Through Certificates, Series 2005-HE7, Cl. A2B, 2.663%, 11/25/35 1 $ 207,278 $ 205,558 - ------------------------------------------------------------------- AmeriCredit Prime Automobile Receivables Trust 2007-1, Automobile Receivables Nts., Series 2007-1, Cl. D, 5.62%, 9/8/14 2 1,319,000 1,002,440 - ------------------------------------------------------------------- Argent Securities Trust 2004-W8, Asset-Backed Pass-Through Certificates, Series 2004-W8, Cl. A2, 2.963%, 5/25/34 1 924,857 824,879 - ------------------------------------------------------------------- Argent Securities Trust 2006-M3, Asset-Backed Pass-Through Certificates, Series 2006-M3, Cl. A2B, 2.583%, 9/25/36 1 530,000 484,853 - ------------------------------------------------------------------- Argent Securities Trust 2006-W5, Asset-Backed Pass-Through Certificates, Series 2006-W5, Cl. A2B, 2.583%, 5/26/36 1 738,637 719,896 - ------------------------------------------------------------------- Capital Auto Receivables Asset Trust 2006-1, Automobile Asset-Backed Securities, Series 2006-1, Cl. A3, 5.03%, 10/15/09 1,253,901 1,258,309 - ------------------------------------------------------------------- Capital Auto Receivables Asset Trust 2007-1, Automobile Asset-Backed Securities, Series 2007-1, Cl. B, 5.15%, 9/17/12 262,000 246,944 - ------------------------------------------------------------------- Capital Auto Receivables Asset Trust 2008-2, Automobile Asset-Backed Securities, Series 2008-2, Cl. A2A, 3.78%, 3/15/11 2,500,000 2,494,238 - ------------------------------------------------------------------- Capital One Auto Finance Trust, Automobile Receivables, Series 2006-C, Cl. A4, 2.501%, 5/15/13 1 1,312,000 1,166,017 - ------------------------------------------------------------------- Capital One Prime Auto Receivables Trust, Automobile Asset-Backed Certificates, Series 2005-1, Cl. A4, 2.491%, 4/15/11 1 6,837,811 6,822,288 - ------------------------------------------------------------------- Centex Home Equity Loan Trust 2006-A, Asset-Backed Certificates, Series 2006-A, Cl. AV2, 2.583%, 5/16/36 1 824,487 808,949 - ------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2006-WFH3, Asset-Backed Pass-Through Certificates, Series 2006-WFH3, Cl. A2, 2.583%, 10/31/36 1 730,000 680,479
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- - ------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ------------------------------------------------------------------- Countrywide Home Loans, Asset-Backed Certificates: Series 2005-16, Cl. 2AF2, 5.382%, 5/25/36 1 $ 1,530,000 $ 1,332,520 Series 2005-17, Cl. 1AF1, 2.683%, 5/25/36 1 18,917 18,815 Series 2005-17, Cl. 1AF2, 5.363%, 5/25/36 1 250,000 227,717 - ------------------------------------------------------------------- CWABS Asset-Backed Certificates Trust, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 2.603%, 12/25/29 1 1,050,000 938,901 - ------------------------------------------------------------------- CWHEQ Revolving Home Equity Loan Trust: Asset-Backed Certificates, Series 2005-G, Cl. 2A, 2.701%, 12/15/35 1 287,379 128,244 Asset-Backed Certificates, Series 2006-H, Cl. 2A1A, 2.621%, 11/15/36 1 110,705 52,650 - ------------------------------------------------------------------- DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates, Series 2008-B, Cl. A2A, 3.81%, 6/8/11 2,500,000 2,492,480 - ------------------------------------------------------------------- Embarcadero Aircraft Securitization Trust, Airplane Receivable Nts., Series 2000-A, Cl. B, 8/15/25 2,3,4 1,820,063 1,706 - ------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2005-FF10, Mtg. Pass-Through Certificates, Series 2005-FF10, Cl. A3, 2.693%, 11/25/35 1 623,347 619,094 - ------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FF10, Mtg. Pass-Through Certificates, Series 2006-FF10, Cl. A3, 2.573%, 7/25/36 1 1,000,000 961,707 - ------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FF5, Mtg. Pass-Through Certificates, Series 2006-FF5, Cl. 2A1, 2.533%, 5/15/36 1 40,325 40,181 - ------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FF9, Mtg. Pass-Through Certificates, Series 2006-FF9, Cl. 2A2, 2.593%, 7/7/36 1 430,000 409,192 - ------------------------------------------------------------------- First Franklin Mortgage Loan Trust 2006-FFA, Mtg. Pass-Through Certificates, Series 2006-FFA, Cl. A3, 2.603%, 9/25/36 1 1,193,723 380,005
F1 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- - ------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ------------------------------------------------------------------- Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts., Series 2007-3, Cl. A3, 2.821%, 6/15/12 1 $ 1,500,000 $ 1,496,237 - ------------------------------------------------------------------- Home Equity Mortgage Trust 2005-1, Mtg. Pass-Through Certificates, Series 2005-1, Cl. M6, 5.363%, 6/1/35 1,046,000 528,720 - ------------------------------------------------------------------- Home Equity Mortgage Trust 2006-5, Mtg. Pass-Through Certificates, Series 2006-5, Cl. A1, 5.50%, 1/25/37 468,078 150,437 - ------------------------------------------------------------------- HSBC Home Equity Loan Trust 2005-3, Closed-End Home Equity Loan Asset-Backed Nts., Series 2005-3, Cl. A1, 2.742%, 1/20/35 1 254,576 235,849 - ------------------------------------------------------------------- HSBC Home Equity Loan Trust 2006-4, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2006-4, Cl. A2V, 2.592%, 3/20/36 1 440,000 420,758 - ------------------------------------------------------------------- Hyundai Auto Receivables Trust 2008-A, Asset-Backed Automobile Securities, Series 2008-A, Cl. A2, 4.16%, 5/16/11 4,160,000 4,167,384 - ------------------------------------------------------------------- Ice Em CLO, Collateralized Loan Obligations: Series 2007-1A, Cl. B, 4.654%, 8/15/22 1,2 7,870,000 5,561,729 Series 2007-1A, Cl. C, 5.954%, 8/15/22 1,2 5,270,000 3,560,412 Series 2007-1A, Cl. D, 7.954%, 8/15/22 1,2 5,270,000 3,342,234 - ------------------------------------------------------------------- Lehman XS Trust, Mtg. Pass-Through Certificates: Series 2005-2, Cl. 2A1B, 5.18%, 8/25/35 1 134,325 134,874 Series 2005-4, Cl. 2A1B, 5.17%, 10/25/35 137,151 136,699 - ------------------------------------------------------------------- Mastr Asset-Backed Securities Trust 2006-WMC3, Mtg. Pass-Through Certificates, Series 2006-WMC3, Cl. A3, 2.583%, 8/25/36 1 1,310,000 1,130,163 - ------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2006-WMC1, Mtg. Asset-Backed Certificates, Series 2006-WMC1, Cl. A2B, 2.623%, 1/25/37 1 272,886 271,282
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- - ------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ------------------------------------------------------------------- NC Finance Trust, CMO Pass-Through Certificates, Series 1999-I, Cl. ECFD, 5.827%, 1/25/29 1,2 $ 66,744 $ 8,677 - ------------------------------------------------------------------- Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2006-2, Cl. 2A2, 2.583%, 7/1/36 1 3,480,000 3,347,989 - ------------------------------------------------------------------- Popular ABS Mortgage Pass-Through Trust 2005-6, Mtg. Pass-Through Certificates, Series 2005-6, Cl. A3, 5.68%, 1/25/36 1 400,000 399,446 - ------------------------------------------------------------------- RAMP Series 2006-RS4 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-RS4, Cl. A1, 2.563%, 7/25/36 1 272,567 270,350 - ------------------------------------------------------------------- RASC Series 2006-KS7 Trust: Home Equity Mtg. Asset-Backed Pass-Through Certificates, Series 2006-KS7, Cl. A1, 2.533%, 9/25/36 1 1,678,240 1,670,267 Home Equity Mtg. Asset-Backed Pass-Through Certificates, Series 2006-KS7, Cl. A2, 2.583%, 9/25/36 1 1,320,000 1,277,081 - ------------------------------------------------------------------- Securitized Asset-Backed Receivables LLC Trust 2007-BR2, Asset-Backed Securities, Series 2007-BR2, Cl. A2, 2.713%, 2/25/37 1 882,678 599,691 - ------------------------------------------------------------------- SLM Student Loan Trust, Student Loan Receivables, Series 2005-B, Cl. B, 3.176%, 6/15/39 1 2,487,000 1,498,136 - ------------------------------------------------------------------- Specialty Underwriting & Residential Finance Trust, Home Equity Asset-Backed Obligations: Series 2005-BC3, Cl. A2B, 2.733%, 6/25/36 1 468,967 466,366 Series 2006-BC1, Cl. A2B, 2.633%, 12/25/36 1 2,000,000 1,964,477 - ------------------------------------------------------------------- Start CLO Ltd., Asset-Backed Credit Linked Securities, Series 2006-3A, Cl. F, 19.677%, 6/7/11 1,2 1,630,000 1,434,400 - ------------------------------------------------------------------- Taganka Car Loan Finance plc, Automobile Asset-Backed Certificates, Series 2006-1A, Cl. C, 5.771%, 11/14/13 1,2 655,000 612,425 - ------------------------------------------------------------------- Terwin Mortgage Trust, Home Equity Asset-Backed Securities, Series 2006-4SL, Cl. A1, 4.50%, 5/1/37 240,477 108,985
F2 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- ASSET-BACKED SECURITIES Continued - ---------------------------------------------------------------------- Wells Fargo Home Equity Asset-Backed Securities 2006-2 Trust, Home Equity Asset-Backed Certificates, Series 2006-2, Cl. A2, 2.583%, 7/25/36 1 $ 1,000,000 $ 980,040 ------------- Total Asset-Backed Securities (Cost $ 68,001,181) 60,093,170 - ---------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS--27.3% - ---------------------------------------------------------------------- GOVERNMENT AGENCY--14.0% - ---------------------------------------------------------------------- FHLMC/FNMA/SPONSORED--13.8% Federal Home Loan Mortgage Corp.: 4.50%, 12/15/18-7/15/19 3,562,104 3,481,519 5%, 8/15/33-9/15/33 4,205,449 4,056,370 5.50%, 5/1/34 17,221,167 17,032,811 6%, 5/15/18-3/15/33 5,455,918 5,566,664 6.50%, 3/15/18-6/15/35 6,193,929 6,443,734 7%, 12/1/23-10/1/31 421,972 446,014 7.50%, 4/25/36 1,356,590 1,469,372 11%, 11/15/14 1,340 1,368 - ---------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Participation Certificates, Series 1897, Cl. K, 7%, 9/15/26 3,067,850 3,261,563 - ---------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 1360, Cl. PZ, 7.50%, 9/15/22 1,653,530 1,773,615 Series 151, Cl. F, 9%, 5/15/21 43,459 43,449 Series 1674, Cl. Z, 6.75%, 2/15/24 1,261,351 1,340,879 Series 2002-66, Cl. FG, 3.483%, 9/25/32 1 2,234,559 2,297,286 Series 2002-84, Cl. FB, 3.483%, 12/25/32 1 2,234,497 2,270,691 Series 2003-11, Cl. FA, 3.483%, 9/25/32 1 2,234,549 2,266,228 Series 2006-11, Cl. PS, 15.464%, 3/25/36 1 751,586 819,879 Series 2043, Cl. ZP, 6.50%, 4/15/28 903,342 946,894 Series 2055, Cl. ZM, 6.50%, 5/15/28 153,448 159,622 Series 2080, Cl. Z, 6.50%, 8/15/28 99,430 104,442 Series 2106, Cl. FG, 2.921%, 12/15/28 1 2,186,151 2,181,097 Series 2116, Cl. ZA, 6%, 1/15/29 992,042 1,021,143 Series 2122, Cl. F, 2.921%, 2/15/29 1 71,111 70,934 Series 2135, Cl. OH, 6.50%, 3/15/29 1,199,233 1,260,965 Series 2148, Cl. ZA, 6%, 4/15/29 2,100,832 2,156,167 Series 2173, Cl. Z, 6.50%, 7/15/29 771,959 798,690 Series 2195, Cl. LH, 6.50%, 10/15/29 921,652 965,757
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Continued Series 2326, Cl. ZP, 6.50%, 6/15/31 $ 153,036 $ 160,761 Series 2344, Cl. FP, 3.421%, 8/15/31 1 654,426 662,149 Series 2351, Cl. PZ, 6.50%, 8/15/31 1,230,285 1,309,976 Series 2368, Cl. PR, 6.50%, 10/15/31 628,489 659,843 Series 2410, Cl. PF, 3.451%, 2/15/32 1,5 3,126,510 3,171,035 Series 2412, Cl. GF, 3.421%, 2/15/32 1 1,517,931 1,538,017 Series 2415, Cl. ZA, 6.50%, 2/15/32 1,759,163 1,847,513 Series 2435, Cl. EQ, 6%, 5/15/31 1,370,812 1,402,835 Series 2449, Cl. FL, 3.021%, 1/15/32 1 858,894 857,508 Series 2451, Cl. FD, 3.471%, 3/15/32 1 481,124 488,227 Series 2453, Cl. BD, 6%, 5/15/17 265,506 276,644 Series 2461, Cl. PZ, 6.50%, 6/15/32 1,711,496 1,818,053 Series 2464, Cl. FI, 3.471%, 2/15/32 1 499,650 507,808 Series 2470, Cl. AF, 3.471%, 3/15/32 1 825,778 855,992 Series 2470, Cl. LF, 3.471%, 2/15/32 1 511,320 520,370 Series 2471, Cl. FD, 3.471%, 3/15/32 1 919,568 931,617 Series 2477, Cl. FZ, 3.021%, 6/15/31 1 1,893,156 1,891,199 Series 2500, Cl. FD, 2.971%, 3/15/32 1 48,653 48,357 Series 2517, Cl. GF, 3.471%, 2/15/32 1 444,566 450,500 Series 2526, Cl. FE, 2.871%, 6/15/29 1 71,194 70,866 Series 2551, Cl. FD, 2.871%, 1/15/33 1 54,521 54,192 Series 2641, Cl. CE, 3.50%, 9/15/25 658,884 656,629 Series 2676, Cl. KY, 5%, 9/15/23 3,843,000 3,748,291 Series 2691, Cl. MG, 4.50%, 10/15/33 6,806,400 6,245,007 Series 2727, Cl. UA, 3.50%, 10/15/22 258,814 258,591 Series 2736, Cl. DB, 3.30%, 11/15/26 3,073,703 3,054,730 Series 2750, Cl. XG, 5%, 2/1/34 6,037,000 5,683,066 Series 2777, Cl. PJ, 4%, 5/15/24 278,310 278,519 Series 2890, Cl. PE, 5%, 11/1/34 6,120,000 5,732,551 Series 2934, Cl. NA, 5%, 4/15/24 925,170 933,231
F3 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Continued Series 2936, Cl. PE, 5%, 2/1/35 $ 4,858,000 $ 4,543,246 Series 2939, Cl. PE, 5%, 2/15/35 1,585,000 1,480,789 Series 3025, Cl. SJ, 15.689%, 8/15/35 1 927,835 1,024,195 Series 3035, Cl. DM, 5.50%, 11/15/25 3,049,041 3,090,418 Series 3094, Cl. HS, 15.322%, 6/15/34 1 516,362 557,938 Series 3105, Cl. BD, 5.50%, 1/15/26 1,500,000 1,514,210 Series 3138, Cl. PA, 5.50%, 2/15/27 4,604,606 4,691,377 - -------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 177, Cl. IO, 15.569%, 7/1/26 6 178,997 47,747 Series 192, Cl. IO, 14.685%, 2/1/28 6 47,148 12,184 Series 200, Cl. IO, 14.493%, 1/1/29 6 58,278 15,566 Series 2003-13, Cl. IO, 12.142%, 3/25/33 6 1,041,916 277,094 Series 2003-26, Cl. DI, 13.714%, 4/25/33 6 836,743 195,078 Series 205, Cl. IO, 12.935%, 9/1/29 6 245,584 69,283 Series 2074, Cl. S, 27.926%, 7/17/28 6 60,832 8,642 Series 2079, Cl. S, 33.94%, 7/17/28 6 98,452 13,340 Series 208, Cl. IO, (15.405)%, 6/1/30 6 269,408 73,174 Series 2136, Cl. SG, 55.693%, 3/15/29 6 2,619,983 218,923 Series 216, Cl. IO, 13.426%, 12/1/31 6 266,497 75,943 Series 2177, Cl. S, 47.18%, 8/15/29 6 2,942,219 282,760 Series 224, Cl. IO, 11.129%, 3/1/33 6 1,797,947 477,199 Series 2399, Cl. SG, 49.212%, 12/15/26 6 1,583,320 146,673 Series 243, Cl. 6, 8.293%, 12/15/32 6 770,746 228,984 Series 2437, Cl. SB, 57.179%, 4/15/32 6 4,578,171 390,254 Series 2526, Cl. SE, 27.334%, 6/15/29 6 133,102 15,578 Series 2802, Cl. AS, 75%, 4/15/33 6 1,268,107 96,746 Series 2920, Cl. S, 44.343%, 1/15/35 6 1,074,056 97,854 Series 2989, Cl. TS, 56.477%, 6/15/25 6 24,182,304 2,843,704 Series 3000, Cl. SE, 72.516%, 7/15/25 6 1,249,935 84,461 Series 3110, Cl. SL, 99.999%, 2/15/26 6 707,799 49,788 - -------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 192, Cl. PO, 5.893%, 2/1/28 7 47,148 36,793
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn.: 4.50%, 5/25/18-8/1/20 $ 25,713,387 $ 25,119,295 5%, 12/1/17-8/25/34 101,489,593 99,629,240 5%, 8/25/33 5 8,241,019 7,951,456 5%, 7/1/38 8 6,183,000 5,926,987 5%, 7/25/33 9 4,492,897 4,335,031 5.296%, 10/1/36 25,093,856 25,505,859 5.50%, 4/25/21-2/25/34 55,718,726 55,293,782 5.50%, 12/25/32 5 37,703,948 37,414,541 5.50%, 7/1/22-7/1/37 8 16,985,000 16,782,645 6%, 10/25/16-4/1/35 31,136,144 31,665,686 6%, 7/25/24-12/1/33 5 7,677,319 7,794,381 6%, 7/1/22-7/1/37 8 24,382,000 24,880,694 6.50%, 4/25/17-1/25/34 8,753,945 9,113,550 6.50%, 3/25/17 5 6,025,086 6,286,361 7%, 11/1/17-6/25/34 7,881,631 8,338,774 7%, 7/1/37 8 1,160,000 1,216,188 7.50%, 2/25/27-3/25/33 4,828,295 5,216,219 8.50%, 7/1/32 7,061 7,778 - -------------------------------------------------------------------- Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Trust 1999-54, Cl. LH, 6.50%, 11/25/29 942,803 973,878 Trust 2001-44, Cl. QC, 6%, 9/25/16 1,891,424 1,966,287 Trust 2001-51, Cl. OD, 6.50%, 10/25/31 488,101 513,578 Trust 2001-69, Cl. PF, 3.483%, 12/25/31 1 1,125,648 1,146,638 Trust 2001-70, Cl. LR, 6%, 9/25/30 16,984 17,077 Trust 2001-74, Cl. QE, 6%, 12/25/31 5,845,879 6,014,780 Trust 2001-80, Cl. ZB, 6%, 1/25/32 1,212,280 1,247,732 Trust 2001-82, Cl. ZA, 6.50%, 1/25/32 456,232 477,234 Trust 2002-12, Cl. PG, 6%, 3/25/17 808,111 840,625 Trust 2002-29, Cl. F, 3.483%, 4/25/32 1 546,783 556,750 Trust 2002-56, Cl. KW, 6%, 4/25/23 3,933,503 4,025,931 Trust 2002-60, Cl. FH, 3.483%, 8/25/32 1 1,139,676 1,159,836 Trust 2002-64, Cl. FJ, 3.483%, 4/25/32 1 168,372 169,905 Trust 2002-68, Cl. FH, 2.981%, 10/18/32 1 379,926 378,696 Trust 2002-71, Cl. UB, 5%, 11/25/15 2,867,060 2,892,794 Trust 2002-9, Cl. PC, 6%, 3/25/17 836,138 869,782 Trust 2002-9, Cl. PR, 6%, 3/25/17 1,023,811 1,065,006 Trust 2002-90, Cl. FH, 2.983%, 9/25/32 1 1,250,208 1,238,530 Trust 2003-116, Cl. FA, 2.883%, 11/25/33 1 137,989 137,651
F4 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Continued Trust 2003-130, Cl. CS, 9.135%, 12/25/33 1 $ 2,986,427 $ 2,882,661 Trust 2003-17, Cl. EQ, 5.50%, 3/25/23 1,452,000 1,454,457 Trust 2003-23, Cl. EQ, 5.50%, 4/25/23 2,883,000 2,861,956 Trust 2003-81, Cl. NB, 4.50%, 11/25/14 3,160,000 3,175,070 Trust 2003-81, Cl. PW, 4%, 3/25/25 717,860 717,855 Trust 2003-84, Cl. AJ, 3%, 4/25/13 312,966 312,401 Trust 2003-84, Cl. GC, 4.50%, 5/25/15 3,790,000 3,808,493 Trust 2003-84, Cl. PW, 3%, 6/25/22 45,826 45,725 Trust 2004-101, Cl. BG, 5%, 1/25/20 630,000 629,239 Trust 2004-52, Cl. JR, 4.50%, 7/25/24 1,245,979 1,248,542 Trust 2005-100, Cl. BQ, 5.50%, 11/25/25 571,000 569,248 Trust 2005-109, Cl. AH, 5.50%, 12/25/25 2,160,000 2,129,568 Trust 2005-31, Cl. PB, 5.50%, 4/25/35 560,000 550,967 Trust 2005-59, Cl. NQ, 10.669%, 5/25/35 1 1,096,366 1,058,262 Trust 2005-71, Cl. DB, 4.50%, 8/25/25 480,000 451,102 Trust 2006-29, Cl. PA, 5.50%, 8/25/26 5,401,562 5,472,125 Trust 2006-44, Cl. OA, 5.50%, 12/25/26 1,577,018 1,605,315 Trust 2006-46, Cl. SW, 15.097%, 6/25/36 1 1,288,703 1,381,776 Trust 2006-50, Cl. KS, 15.098%, 6/25/36 1 550,656 576,864 Trust 2006-57, Cl. PA, 5.50%, 8/25/27 1,770,819 1,801,634 - ----------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-61, Cl. SH, 40.355%, 11/18/31 6 619,459 81,400 Trust 2001-63, Cl. SD, 29.703%, 12/18/31 6 143,791 15,226 Trust 2001-68, Cl. SC, 25.912%, 11/25/31 6 99,006 12,258 Trust 2001-81, Cl. S, 26.469%, 1/25/32 6 113,734 14,343 Trust 2002-28, Cl. SA, 27.775%, 4/25/32 6 68,135 7,795
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2002-38, Cl. IO, 32.432%, 4/25/32 6 $ 331,000 $ 27,053 Trust 2002-48, Cl. S, 26.491%, 7/25/32 6 109,256 12,853 Trust 2002-52, Cl. SL, 26.69%, 9/25/32 6 68,465 8,202 Trust 2002-56, Cl. SN, 28.544%, 7/25/32 6 150,131 17,780 Trust 2002-77, Cl. IS, 29.05%, 12/18/32 6 563,926 69,460 Trust 2002-77, Cl. SH, 29.756%, 12/18/32 6 150,988 15,669 Trust 2002-9, Cl. MS, 25.647%, 3/25/32 6 144,616 17,816 Trust 2003-117, Cl. KS, 41.049%, 8/25/33 6 11,406,690 1,051,209 Trust 2003-118, Cl. S, 38.174%, 12/25/33 6 1,273,945 194,756 Trust 2003-33, Cl. SP, 42.825%, 5/25/33 6 1,027,140 150,168 Trust 2003-38, Cl. SA, 23.487%, 3/25/23 6 1,899,257 218,319 Trust 2003-4, Cl. S, 39.247%, 2/25/33 6 312,074 47,683 Trust 2005-105, Cl. S, 77.313%, 12/25/35 6 3,006,497 276,093 Trust 2005-40, Cl. SA, 41.56%, 5/25/35 6 2,965,250 237,092 Trust 2005-40, Cl. SB, 66.704%, 5/25/35 6 4,838,399 388,871 Trust 2005-63, Cl. SA, 70.671%, 10/25/31 6 236,790 20,891 Trust 2005-71, Cl. SA, 52.759%, 8/25/25 6 782,810 69,916 Trust 2005-83, Cl. SL, 74.04%, 10/25/35 6 4,389,467 442,359 Trust 2005-85, Cl. SA, 99.999%, 10/25/35 6 11,966,998 779,688 Trust 2005-87, Cl. SE, 99.999%, 10/25/35 6 11,637,977 774,626 Trust 2005-87, Cl. SG, 79.288%, 10/25/35 6 3,124,131 302,899 Trust 2006-119, Cl. MS, 75.419%, 12/25/36 6 2,395,836 244,988 Trust 2006-33, Cl. SP, 60.942%, 5/25/36 6 2,869,315 321,958 Trust 2006-34, Cl. SK, 59.65%, 5/25/36 6 5,216,640 632,684 Trust 2006-42, Cl. CI, 33.62%, 6/25/36 6 7,588,008 711,262 Trust 2006-48, Cl. QA, 35.343%, 6/25/36 6 5,694,545 530,479 Trust 2006-90, Cl. SX, 82.216%, 9/25/36 6 2,942,447 245,885
F5 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued Trust 214, Cl. 2, 22.604%, 3/1/23 6 $ 736,171 $ 178,147 Trust 221, Cl. 2, 18.656%, 5/1/23 6 81,375 21,669 Trust 240, Cl. 2, 27.151%, 9/1/23 6 158,125 45,073 Trust 254, Cl. 2, 12.686%, 1/1/24 6 1,292,383 367,012 Trust 2682, Cl. TQ, 81.615%, 10/15/33 6 1,132,550 92,229 Trust 2981, Cl. BS, 92.822%, 5/15/35 6 2,117,334 154,971 Trust 301, Cl. 2, 7.788%, 4/1/29 6 342,075 87,242 Trust 313, Cl. 2, (12.028)%, 6/1/31 6 356,153 96,186 Trust 319, Cl. 2, 13.169%, 2/1/32 6 110,321 28,579 Trust 321, Cl. 2, 13.054%, 4/1/32 6 492,736 126,817 Trust 324, Cl. 2, 7.312%, 7/1/32 6 858,642 222,103 Trust 331, Cl. 5, 9.179%, 2/1/33 6 1,897,561 425,314 Trust 334, Cl. 12, 5.277%, 2/1/33 6 1,615,381 363,399 Trust 334, Cl. 5, 10.951%, 5/1/33 6 1,125,316 269,490 Trust 339, Cl. 15, 12.198%, 7/1/33 6 4,168,675 1,058,160 Trust 339, Cl. 7, 5.884%, 7/1/33 6 7,767,975 1,824,342 Trust 342, Cl. 2, 13.137%, 9/1/33 6 1,662,047 447,086 Trust 344, Cl. 2, 11.44%, 12/1/33 6 5,520,291 1,486,626 Trust 345, Cl. 9, 8.72%, 1/1/34 6 1,987,022 496,346 Trust 351, Cl. 9, 5.067%, 10/1/34 6 17,370,299 4,205,055 Trust 362, Cl. 12, 7.298%, 8/1/35 6 1,192,413 281,734 Trust 362, Cl. 13, 7.246%, 8/1/35 6 710,883 167,995 - -------------------------------------------------------------------- Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 324, Cl. 1, 5.561%, 7/1/32 7 214,409 164,697 --------------- 582,467,561 - -------------------------------------------------------------------- GNMA/GUARANTEED--0.2% Government National Mortgage Assn.: 5.125%, 12/9/25 1 7,354 7,393 7%, 3/29/28-7/29/28 390,610 416,633 7.50%, 3/1/27 32,622 35,143 8%, 11/29/25-5/29/26 103,951 113,818 - -------------------------------------------------------------------- Government National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 1999-32, Cl. ZB, 8%, 9/16/29 1,542,446 1,676,184 Series 2000-12, Cl. ZA, 8%, 2/16/30 3,634,870 3,946,761 Series 2001-62, Cl. KZ, 6.50%, 12/16/31 2,839,273 2,979,162
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------- GNMA/GUARANTEED Continued Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 1998-19, Cl. SB, 27.187%, 7/16/28 6 $ 197,252 $ 26,795 Series 1998-6, Cl. SA, 37.504%, 3/16/28 6 123,360 15,210 Series 2001-21, Cl. SB, 42.343%, 1/16/27 6 931,802 86,793 Series 2006-47, Cl. SA, 86.712%, 8/16/36 6 1,833,330 158,271 --------------- 9,462,163 - -------------------------------------------------------------------- NON-AGENCY--13.3% - -------------------------------------------------------------------- COMMERCIAL--4.1% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates: Series 2006-5, Cl. A2, 5.348%, 10/10/11 3,160,000 3,117,936 Series 2008-1, Cl. AJ, 6.197%, 1/1/18 1 940,000 800,469 Series 2008-1, Cl. AM, 6.197%, 1/1/18 1 940,000 883,013 - -------------------------------------------------------------------- Banc of America Funding Corp., Mtg. Pass-Through Certificates, Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 331,177 331,964 - -------------------------------------------------------------------- Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-8, Cl. 5A1, 6.50%, 5/25/32 285,423 291,093 - -------------------------------------------------------------------- ChaseFlex Trust 2006-2, Multiclass Mtg. Pass-Through Certificates, Series 2006-2, Cl. A1B, 2.493%, 8/25/08 1 222,268 216,834 - -------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-17, Mtg. Pass-Through Certificates, Series 2005-17, Cl. 1A8, 5.50%, 9/1/35 3,740,000 3,440,601 - -------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-HYB8, Mtg. Pass-Through Certificates, Series 2005-HYB8, Cl. 4A1, 5.611%, 12/20/35 1 223,487 172,974 - -------------------------------------------------------------------- Citigroup Commercial Mortgage Trust 2006-C4, Commercial Mtg. Pass-Through Certificates, Series 2006-C4, Cl. A3, 5.915%, 3/1/49 1 2,940,000 2,873,285
F6 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- COMMERCIAL Continued Citigroup Mortgage Loan Trust, Inc. 2006-WF1, Asset-Backed Pass-Through Certificates, Series 2006-WF1, Cl. A2B, 5.536%, 3/1/36 $ 123,328 $ 123,292 - ------------------------------------------------------------------- Citigroup/Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates: Series 2007-CD4, Cl. A2B, 5.205%, 12/11/49 9,170,000 8,931,145 Series 2007-CD4, Cl. AJ, 5.398%, 12/1/49 2,680,000 2,091,026 - ------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2006-A5, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2006-A5, Cl. 1A13, 2.933%, 10/25/36 1 2,562,403 2,141,478 - ------------------------------------------------------------------- CWABS Asset-Backed Certificates Trust 2006-8, Asset-Backed Certificates, Series 2006-8, Cl. 2A1, 2.513%, 1/25/46 1 1,091,650 1,083,286 - ------------------------------------------------------------------- CWALT Alternative Loan Trust 2007-8CB, Mtg. Pass-Through Certificates, Series 2007-8CB, Cl. A1, 5.50%, 5/25/37 5,383,912 4,984,237 - ------------------------------------------------------------------- Deutsche Alt-A Securities Mortgage Loan Trust, Mtg. Pass-Through Certificates: Series 2006-AB1, Cl. A2A, 5.50%, 2/25/36 1,055,530 1,031,710 Series 2006-AB2, Cl. A1, 5.888%, 6/25/36 1,566,389 1,563,712 Series 2006-AB2, Cl. A7, 5.961%, 6/25/36 420,656 416,879 Series 2006-AB3, Cl. A7, 6.36%, 7/1/36 152,379 149,939 Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 2,217,734 2,184,216 Series 2007-RS1, Cl. A2, 2.983%, 1/27/37 1,2 1,705,484 1,126,131 - ------------------------------------------------------------------- First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 1,255,536 1,214,009 - ------------------------------------------------------------------- GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations, Series 2004-C3, Cl. A2, 4.433%, 7/10/39 2,135,000 2,131,063
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------- COMMERCIAL Continued GMAC Commercial Mortgage Securities, Inc., Commercial Mtg. Pass-Through Certificates, Series 1998-C1, Cl. F, 7.183%, 5/15/30 1 $ 1,567,000 $ 1,561,540 - ------------------------------------------------------------------- Greenwich Capital Commercial Funding Corp., Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A2, 5.381%, 3/10/39 1,990,000 1,948,586 - ------------------------------------------------------------------- Greenwich Capital Commercial Mortgage 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. A4, 5.736%, 8/1/17 7,720,000 7,313,736 - ------------------------------------------------------------------- GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2006-GG8, Cl. A2, 5.479%, 11/1/39 1,702,000 1,689,478 - ------------------------------------------------------------------- GSR Mortgage Loan Trust 2005-4F, Mtg. Pass-Through Certificates, Series 2005-4F, Cl. 6A1, 6.50%, 2/25/35 3,386,523 3,244,475 - ------------------------------------------------------------------- Indymac Index Mortgage Loan Trust 2005-AR31, Mtg. Pass-Through Certificates, Series 2005-AR31, Cl. 2 A2, 5.338%, 1/1/36 1 631,536 445,619 - ------------------------------------------------------------------- JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2007-CB15, Cl. AJ, 5.502%, 6/1/47 630,000 494,997 Series 2007-CB18, Cl. AM, 5.466%, 6/1/47 6,380,000 5,709,049 Series 2007-LD11, Cl. A2, 5.992%, 6/15/49 1 5,390,000 5,347,521 Series 2007-LD12, Cl. A2, 5.827%, 2/15/51 5,682,000 5,616,089 Series 2007-LDPX, Cl. A2S, 5.305%, 1/15/49 2,380,000 2,319,083 Series 2008-C2, Cl. A4, 6.068%, 2/1/51 8,390,000 8,416,261 Series 2008-C2, Cl. AJ, 6.799%, 2/1/51 3,210,000 2,958,721 Series 2008-C2, Cl. AM, 6.799%, 2/1/51 4,990,000 4,921,388 - ------------------------------------------------------------------- JPMorgan Commercial Mortgage Finance Corp., Mtg. Pass-Through Certificates, Series 2000-C9, Cl. A2, 7.77%, 10/15/32 2,273,436 2,342,725
F7 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - ---------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- COMMERCIAL Continued JPMorgan Mortgage Trust 2006-A2, Mtg. Pass-Through Certificates, Series 2006-A2, Cl. 3A4, 5.673%, 4/1/36 1 $ 2,944,271 $ 2,279,805 - ---------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates, Series 2006-C1, Cl. A2, 5.084%, 2/11/31 1,650,000 1,636,055 - ---------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2007-C1, Commercial Mtg. Pass-Through Certificates, Series 2007-C1, Cl. A2, 5.318%, 1/15/12 8,330,000 8,152,630 - ---------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2008-C1, Commercial Mtg. Pass-Through Certificates, Series 2008-C1, Cl. AM, 6.317%, 4/11/41 1 2,610,000 2,433,267 - ---------------------------------------------------------------------------- Mastr Alternative Loan Trust, CMO Pass-Through Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34 432,683 394,424 - ---------------------------------------------------------------------------- Mastr Asset Securitization Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 2.933%, 10/25/36 1 6,717,725 6,088,031 - ---------------------------------------------------------------------------- Merrill Lynch Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates, Series 2006-C1, Cl. AJ, 5.658%, 5/1/39 1 1,175,000 983,207 - --------------------------------------------------------------------------- Nomura Asset Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 1998-D6, Cl. A1B, 6.59%, 3/15/30 577,797 580,531 - ---------------------------------------------------------------------------- Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 556,000 583,800 - ---------------------------------------------------------------------------- RALI Series 2005-QA4 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2005-QA4, Cl. A32, 5.384%, 4/25/35 1,2 170,587 113,930 - ---------------------------------------------------------------------------- RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A114, 5.75%, 4/25/37 1,726,464 1,655,268
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- COMMERCIAL Continued Residential Asset Securitization Trust 2006-A9CB, Mtg. Pass-Through Certificates, Series 2006-A9CB, Cl. A5, 6%, 9/25/36 $ 1,122,967 $ 1,111,655 - ---------------------------------------------------------------------------- Residential Asset Securitization Trust, Mtg. Pass-Through Certificates, Series 2006-A12, Cl. 1A, 6.25%, 11/25/36 1,244,266 1,080,896 - ---------------------------------------------------------------------------- STARM Mortgage Loan Trust 2007-1, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 2A1, 5.829%, 2/1/37 1 9,710,184 8,920,806 - ---------------------------------------------------------------------------- STARM Mortgage Loan Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.658%, 6/1/37 1 3,204,643 3,004,854 - ---------------------------------------------------------------------------- Structured Asset Mortgage Investments, Inc., Mtg. Pass-Through Certificates, Series 2002-AR3, Cl. A2, 2.998%, 9/19/32 1 680,304 428,592 - ---------------------------------------------------------------------------- Wachovia Bank Commercial Mortgage Trust 2006-C29, Commercial Mtg. Pass-Through Certificates, Series 2006-C29, Cl. A2, 5.272%, 11/15/48 2,997,000 2,949,669 - ---------------------------------------------------------------------------- Wachovia Mortgage Loan Trust LLC, Mtg. Pass-Through Certificates, Series 2007-A, Cl. 1A1, 5.996%, 3/1/37 1 4,692,797 4,631,292 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A7, 5.645%, 11/1/36 1 1,823,719 1,330,307 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR15 Trust, Mtg. Pass-Through Certificates, Series 2006-AR15, Cl. 1A, 4.634%, 11/1/46 1 1,639,665 1,154,324 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 1A4, 5.882%, 8/1/46 1 8,114,394 7,860,521 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates: Series 2007-HY1, Cl. 1A2, 5.714%, 2/25/37 1,2 2,782,533 1,530,393 Series 2007-HY1, Cl. 2A4, 5.867%, 2/1/37 1,2 688,258 502,429
F8 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- COMMERCIAL Continued WaMu Mortgage Pass-Through Certificates 2007-HY3 Trust, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 2A2, 5.665%, 3/1/37 1 $ 4,097,661 $ 2,979,626 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY4 Trust, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 5A1, 5.636%, 11/1/36 1 760,163 723,766 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 2A3, 5.658%, 5/1/37 1 794,506 741,451 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-OA3 Trust, Mtg. Pass-Through Certificates, Series 2007-OA3, Cl. 5A, 4.81%, 4/1/47 1 1,105,342 744,669 - ---------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A2, 4.013%, 12/1/34 1 7,630,887 7,531,589 - ---------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-U Trust, Mtg. Pass-Through Certificates, Series 2004-U, Cl. A1, 6.313%, 10/1/34 1 1,334,771 1,331,735 - ---------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-V Trust, Mtg. Pass-Through Certificates, Series2004-V, Cl. 1A1, 3.833%, 10/1/34 1 4,216,179 4,187,748 - ---------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-W Trust, Mtg. Pass-Through Certificates, Series 2004-W, Cl. B2, 4.553%, 11/1/34 1 1,383,211 1,011,766 --------------- 174,288,596 - ---------------------------------------------------------------------------- MANUFACTURED HOUSING--0.2% Wells Fargo Mortgage-Backed Securities 2006-AR12 Trust, Mtg. Pass-Through Certificates, Series 2006-AR12, Cl. 2A1, 6.099%, 9/25/36 1 6,783,276 6,489,045 - ---------------------------------------------------------------------------- MULTIFAMILY--0.5% Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2003-E, Cl. 2A2, 4.606%, 6/25/33 1 2,881,463 2,874,921
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- MULTIFAMILY Continued CHL Mortgage Pass-Through Trust 2003-46, Mtg. Pass-Through Certificates, Series 2003-46, Cl. 1A2, 4.13%, 1/19/34 1 $ 5,336,229 $ 5,294,040 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY1, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 1A1, 5.694%, 4/25/37 1 1,216,415 1,136,278 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2003-AR10 Trust, Mtg. Pass-Through Certificates, Series 2003-AR10, Cl. A7, 4.056%, 10/1/33 1 1,250,000 1,222,019 - ---------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR5 Trust, Mtg. Pass-Through Certificates, Series 2006-AR5, Cl. 2A1, 5.54%, 4/1/36 1 10,939,515 10,622,066 --------------- 21,149,324 - ---------------------------------------------------------------------------- OTHER--0.0% JPMorgan Mortgage Trust 2005-S2, Mtg. Pass-Through Certificates, Series 2005-S2, Cl. 3A1, 6.762%, 2/25/32 1 1,744,899 1,715,096 - ---------------------------------------------------------------------------- RESIDENTIAL--8.5% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates: Series 2007-4, Cl. A4, 5.936%, 7/1/17 1 4,200,000 4,008,058 Series 2007-4, Cl. AM, 6.003%, 8/1/17 1 6,560,000 6,014,715 - ---------------------------------------------------------------------------- Bear Stearns ARM Trust 2004-2, Mtg. Pass-Through Certificates, Series 2004-2, Cl. 12A2, 4.388%, 5/1/34 1,2 4,030,834 3,748,675 - ---------------------------------------------------------------------------- Bear Stearns ARM Trust 2004-9, Mtg. Pass-Through Certificates, Series 2004-9, Cl. 23A1, 5.028%, 11/1/34 1 3,863,009 3,751,564 - ---------------------------------------------------------------------------- Chase Mortgage Finance Trust 2006-S3, Multiclass Mtg. Pass-Through Certificates, Series 2006-S3, Cl. 1A2, 6%, 11/1/36 4,210,000 3,758,907 - ---------------------------------------------------------------------------- Chase Mortgage Finance Trust 2007-A1, Multiclass Mtg. Pass-Through Certificates, Series 2007-A1, Cl. 9A1, 4.572%, 2/1/37 1 4,236,742 4,054,525
F9 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - ----------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- RESIDENTIAL Continued CHL Mortgage Pass-Through Trust 2005-26, Mtg. Pass-Through Certificates, Series 2005-26, Cl. 1A8, 5.50%, 11/1/35 $ 3,823,596 $ 3,516,764 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-27, Mtg. Pass-Through Certificates, Series 2005-27, Cl. 2A1, 5.50%, 12/1/35 3,375,512 3,104,610 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-31, Mtg. Pass-Through Certificates, Series 2005-31, Cl. 2A4, 5.49%, 1/1/36 1,2 1,483,767 964,449 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2005-J4, Mtg. Pass-Through Certificates, Series 2005-J4, Cl. A7, 5.50%, 11/1/35 2,110,000 1,849,411 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY3, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 1A1, 5.702%, 6/1/47 1 3,974,485 3,480,158 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY4, Mtg. Pass-Through Certificates: Series 2007-HY4, Cl. 1A1, 6.094%, 9/25/47 1 11,826,302 10,643,672 Series 2007-HY4, Cl. 1A2, 6.094%, 9/1/47 1,2 4,026,553 2,778,321 Series 2007-HY4, Cl. 2A2, 6.23%, 11/1/37 1,2 942,120 650,063 Series 2007-HY4, Cl. 3A2, 6.402%, 11/1/37 1,2 945,638 652,490 - ---------------------------------------------------------------------------- CHL Mortgage Pass-Through Trust 2007-HY5, Mtg. Pass-Through Certificates: Series 2007-HY5, Cl. 1A2, 5.932%, 9/1/37 1,2 4,421,643 3,272,016 Series 2007-HY5, Cl. 2A2, 6.005%, 9/1/37 1,2 1,105,591 818,137 Series 2007-HY5, Cl. 3A2, 6.204%, 9/1/37 1,2 2,813,717 2,082,151 - ---------------------------------------------------------------------------- Citigroup Commercial Mortgage Trust 2007-C6, Commercial Mtg. Pass-Through Certificates, Series 2007-C6, Cl. A2, 5.889%, 8/1/12 1 1,110,000 1,095,963
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- RESIDENTIAL Continued Citigroup Commercial Mortgage Trust 2008-C7, Commercial Mtg. Pass-Through Certificates, Series 2008-C7, Cl. A4, 6.299%, 12/1/49 1 $ 3,800,000 $ 3,719,442 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2005-2, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2005-2, Cl. 1A3, 4.952%, 5/1/35 1 4,504,835 4,151,311 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2005-3, Asset-Backed Pass-Through Certificates, Series 2005-3, Cl. 2A4, 5.196%, 8/1/35 1 8,644,035 8,020,985 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2006-AR1, Asset-Backed Pass-Through Certificates, Series 2006-AR1, Cl. 3A2, 5.50%, 3/1/36 1,2 4,643,278 3,180,646 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2006-AR2, Asset-Backed Pass-Through Certificates, Series 2006-AR2, Cl. 1AB, 5.591%, 3/1/36 2 4,223,901 2,787,775 - ---------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc. 2006-AR2, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 1 A2, 5.526%, 3/1/36 1 9,850,745 9,189,361 - ---------------------------------------------------------------------------- Citigroup/Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. AMFX, 5.366%, 12/1/49 5,680,000 5,048,172 - ---------------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2006-A1, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2006-A1, Cl. 2A1, 5.25%, 3/1/21 2,666,714 2,559,855 - ---------------------------------------------------------------------------- CitiMortgage Alternative Loan Trust 2006-A5, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2006-A5, Cl. 2A1, 5.50%, 10/1/21 3,248,320 3,078,943
F10 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- RESIDENTIAL Continued CitiMortgage Alternative Loan Trust 2007-A2, Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2007-A2, Cl. 1A5, 6%, 2/25/37 $ 5,942,223 $ 5,474,355 - ---------------------------------------------------------------------------- COMM 2007-C9 Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-C9, Cl. A4, 6.01%, 7/1/17 1 4,230,000 4,057,435 - ---------------------------------------------------------------------------- CWALT Alternative Loan Trust 2005-J1, Mtg. Pass-Through Certificates, Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 5,395,401 4,752,057 - ---------------------------------------------------------------------------- CWALT Alternative Loan Trust 2006-43CB, Mtg.Pass-Through Certificates, Series 2006-43CB, Cl. 1A10, 6%, 2/1/37 16,270,393 13,536,804 - ---------------------------------------------------------------------------- GSR Mortgage Loan Trust 2004-5, Mtg. Pass-Through Certificates, Series 2004-5, Cl. 2A1, 4.485%, 5/1/34 1 643,807 631,634 - ---------------------------------------------------------------------------- GSR Mortgage Loan Trust 2005-AR6, Mtg. Pass-Through Certificates: Series 2005-AR6, Cl. 1A4, 4.689%, 9/1/35 1 2,265,220 2,237,246 Series 2005-AR6, Cl. 3A1, 4.56%, 9/25/35 1 5,174,504 4,959,652 - ---------------------------------------------------------------------------- GSR Mortgage Loan Trust 2007-AR1, Mgt. Pass-Through Certificates, Series 2007-AR1, Cl. 2A1, 5.998%, 3/1/37 1 21,475,959 19,830,690 - ---------------------------------------------------------------------------- GSR Mortgage Loan Trust 2007-AR1, Mtg. Pass-Through Certificates, Series 2007-AR1, Cl. 4A1, 5.832%, 3/1/37 1,2 4,116,839 3,731,462 - ---------------------------------------------------------------------------- JPMorgan Mortgage Trust 2007-A1, Mtg. Pass-Through Certificates, Series 2007-A1, Cl. 7A1, 5.299%, 7/1/35 1,2 6,728,483 6,324,774 - ---------------------------------------------------------------------------- JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A3, 6.024%, 5/1/37 1,2 1,986,476 1,432,746 - ---------------------------------------------------------------------------- LB-UBS Commercial Mortgage Trust 2007-C7, Commercial Mtg. Pass-Through Certificates, Series 2007-C7, Cl. A3, 5.866%, 9/11/45 1,300,000 1,242,958 - ---------------------------------------------------------------------------- Lehman XS Trust, Mtg. Pass-Through Certificates, Series 2005-10, Cl. 2A3B, 5.55%, 1/25/36 285,404 278,513
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------- RESIDENTIAL Continued Mastr Adjustable Rate Mortgages Trust 2006-2, Mtg. Pass-Through Certificates, Series 2006-2, Cl. 1A1, 4.857%, 4/1/36 1 $ 2,064,261 $ 2,031,913 - ---------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2006-3, Mtg. Pass-Through Certificates, Series 2006-3, Cl. 2A1, 6.073%, 10/25/36 1 5,416,418 5,242,418 - ---------------------------------------------------------------------------- Merrill Lynch Mortgage Investors Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 1A1, 5.812%, 9/1/37 1,2 3,008,104 2,707,293 - ---------------------------------------------------------------------------- RALI Series 2006-QS13 Trust: Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A5, 6%, 9/25/36 3,957,621 3,849,257 Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 780,152 775,458 - ---------------------------------------------------------------------------- RALI Series 2006-QS5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS5, Cl. 2A2, 6%, 5/1/36 438,300 423,663 - ---------------------------------------------------------------------------- RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A28, 5.75%, 4/25/37 1,626,379 1,559,310 - ---------------------------------------------------------------------------- Residential Asset Securitization Trust 2005-A14, Mtg. Pass-Through Certificates, Series 2005-A14, Cl. A1, 5.50%, 12/1/35 3,720,000 3,022,848 - ---------------------------------------------------------------------------- Residential Asset Securitization Trust 2005-A6CB, Mtg. Pass-Through Certificates, Series 2005-A6CB, Cl. A7, 6%, 6/1/35 6,385,405 5,811,607 - ---------------------------------------------------------------------------- Residential Funding Mortgage Securities I, Inc., Mtg. Pass-Through Certificates, 5.777%, 7/1/37 1,2 3,328,107 2,329,675 - ---------------------------------------------------------------------------- WaMu Asset-Backed Certificates 2005-AR12 Trust, Mtg. Asset-Backed Certificates, Series 2007-AR12, Cl. 1A8, 4.833%, 10/1/35 1 4,061,388 3,948,664 - ---------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2003-AR9 Trust, Mtg. Pass-Through Certificates, Series 2003-AR9, Cl. 2A, 4.046%, 9/25/33 1 2,021,288 1,935,110
F11 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -----------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- RESIDENTIAL Continued WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A1, 5.053%, 12/1/35 1 $ 4,663,834 $ 4,543,995 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR10 Trust, Mtg. Pass-Through Certificates, Series 2006-AR10, Cl. 1A2, 5.933%, 9/1/36 1 5,347,861 5,316,366 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 2A4, 5.759%, 11/1/36 1 547,671 383,370 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates: Series 2007-HY1, Cl. 4A1, 5.473%, 2/1/37 1 20,105,300 18,970,263 Series 2007-HY1, Cl. 5A1, 5.774%, 2/1/37 1 11,518,948 10,452,720 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY2 Trust, Mtg. Pass-Through Certificates: Series 2007-HY2, Cl. 1A1, 5.622%, 12/1/36 1 13,390,007 12,567,096 Series 2007-HY2, Cl. 1A2, 5.622%, 12/1/36 1,2 1,599,315 1,119,520 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY3 Trust, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 4A1, 5.348%, 3/1/37 1 13,341,883 12,457,446 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY4 Trust, Mtg. Pass-Through Certificates, Series 2007-HY4, Cl. 4A1, 5.502%, 9/25/36 1 11,652,383 11,177,226 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY6 Trust, Mtg. Pass-Through Certificates, Series 2007-HY6, Cl. 2A1, 5.698%, 6/25/37 1 5,956,701 5,530,051 - ----------------------------------------------------------------------------- WaMu Mortgage Pass-Through Certificates 2007-HY7 Trust, Mtg. Pass-Through Certificates, Series2007-HY7, Cl. 2A1, 5.878%, 7/1/37 1 3,334,864 3,001,153 - ----------------------------------------------------------------------------- Washington Mutual Mortgage Pass-Through Certificates, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 1A8, 6%, 2/25/37 5,274,195 5,121,785
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------- RESIDENTIAL Continued Wells Fargo Mortgage-Backed Securities 2004-EE Trust, Mtg. Pass-Through Certificates, Series 2004-EE, Cl. 3A1, 4.013%, 12/1/34 1 $ 3,182,175 $ 3,140,766 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 4.365%, 9/1/34 1 450,145 438,273 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2005-AR12 Trust, Mtg. Pass-Through Certificates, Series 2005-AR12, Cl. 2A6, 4.321%, 7/1/35 1 2,425,837 2,317,278 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2005-AR16 Trust, Mtg. Pass-Through Certificates, Series 2005-AR16, Cl. 2A1, 4.944%, 10/1/35 1 3,021,102 2,915,165 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-12 Trust, Mtg. Pass-Through Certificates, Series 2006-12, Cl. A1, 6%, 10/25/36 2,080,006 2,083,879 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR10 Trust, Mtg. Pass-Through Certificates: Series 2006-AR10, Cl. 2A2, 5.646%, 7/1/36 1,2 2,468,172 1,801,765 Series 2006-AR10, Cl. 3A2, 5.005%, 7/1/36 1,2 1,064,904 777,380 Series 2006-AR10, Cl. 4A2, 5.561%, 7/1/36 1,2 3,699,198 2,700,414 Series 2006-AR10, Cl. 5A3, 5.595%, 7/1/36 1 1,835,332 1,793,906 Series 2006-AR10, Cl. 5A6, 5.595%, 7/1/36 1 17,894,090 17,245,136 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR13 Trust, Mtg. Pass-Through Certificates: Series 2006-AR13, Cl. A2, 5.752%, 9/1/36 1 15,031,143 14,600,170 Series 2006-AR13, Cl. A4, 5.752%, 9/1/36 1 11,440,000 10,452,968 - ----------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities 2006-AR8 Trust, Mtg. Pass-Through Certificates, Series 2006-AR8, Cl. 2A1, 5.24%, 4/1/36 1 2,795,595 2,692,412 ---------------- 357,709,184 ---------------- Total Mortgage-Backed Obligations (Cost $1,145,013,516) 1,153,280,969
F12 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- U.S.GOVERNMENT OBLIGATIONS--3.7% - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. Unsec. Nts.: 3.375%, 4/15/09 10 $ 38,125,000 $ 38,289,357 3.75%, 6/28/13 17,950,000 17,648,889 5.25%, 5/21/09 37,250,000 38,029,568 - -------------------------------------------------------------------------------- Federal National Mortgage Assn. Unsec. Nts.: 3.25%, 4/9/13 11 19,165,000 18,470,077 3.375%, 5/19/11 33,380,000 33,256,093 3.875%, 7/12/13 3,255,000 3,216,285 - -------------------------------------------------------------------------------- Resolution Funding Corp. Bonds, Residual Funding STRIPS, 5.155%, 1/15/21 12 5,667,000 3,127,753 - -------------------------------------------------------------------------------- U.S. Treasury Bonds: STRIPS, 4.201%, 2/15/11 5,12 900,000 836,281 STRIPS, 4.831%, 2/15/16 5,12 4,491,000 3,340,680 Total U.S.Government Obligations -------------- (Cost $ 155,605,585) 156,214,983 - -------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--25.5% - -------------------------------------------------------------------------------- ARGENTINA--0.4% Argentina (Republic of) Bonds: 3.092%, 8/3/12 1 6,792,500 5,739,917 7%, 10/3/15 1,270,000 884,555 Series GDP, 0.971%, 12/15/35 1 8,600,000 855,700 Series V, 7%, 3/28/11 6,312,000 5,409,560 Series VII, 7%, 9/12/13 6,265,000 4,803,429 -------------- 17,693,161 - -------------------------------------------------------------------------------- AUSTRALIA--0.2% New South Wales Treasury Corp. Sr. Unsec. Nts., Series 17RG, 5.50%, 3/1/17 10,345,000 AUD 8,938,920 - -------------------------------------------------------------------------------- AUSTRIA--0.2% Austria (Republic of) Unsec. Unsub. Nts., Series E, 4%, 9/15/16 4,237,000 EUR 6,318,176 - -------------------------------------------------------------------------------- BELGIUM--0.1% Belgium (Kingdom of) Bonds, Series 44, 5%, 3/28/35 3,925,000 EUR 6,067,021 - -------------------------------------------------------------------------------- BRAZIL--2.6% Banco Nac de Desen Econo Nts., 6.369%, 6/16/18 13 5,340,000 5,340,000 - -------------------------------------------------------------------------------- Brazil (Federal Republic of) Bonds: 6%, 1/17/17 11,870,000 12,131,140 8%, 1/15/18 22,150,000 24,652,950 8.75%, 2/4/25 2,950,000 3,699,300 8.875%, 10/14/19 9,085,000 11,397,133 10.50%, 7/14/14 6,288,000 7,970,040 - -------------------------------------------------------------------------------- Brazil (Federal Republic of) Letras Tesouro Nacional Treasury Bills, 0%, 1/1/09 12 22,670,000 BRR 13,247,704
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- Brazil Continued Brazil (Federal Republic of) Nota Do Tesouro Nacional Nts.: 10%, 1/10/10 18,216,000 BRR $ 10,628,042 10%, 1/1/12 13,111,000 BRR 7,583,296 10%, 1/1/17 21,882,000 BRR 11,559,746 - -------------------------------------------------------------------------------- Brazil (Federal Republic of) Nts., 7.875%, 3/7/15 130,000 145,925 -------------- 108,355,276 - -------------------------------------------------------------------------------- BULGARIA--0.0% Bulgaria (Republic of) Bonds: 8.25%, 1/15/15 740,000 842,675 8.25%, 1/15/15 13 710,000 808,513 -------------- 1,651,188 - -------------------------------------------------------------------------------- CANADA--0.6% Canada (Government of) Nts.: 3.75%, 6/1/12 17,910,000 CAD 17,766,327 4.25%, 12/1/09 8,855,000 CAD 8,798,120 -------------- 26,564,447 - -------------------------------------------------------------------------------- COLOMBIA--0.6% Bogota Distrio Capital Sr. Bonds, 9.75%, 7/26/28 13 3,058,000,000 COP 1,178,772 - -------------------------------------------------------------------------------- Colombia (Republic of) Bonds: 7.375%, 9/18/37 3,805,000 4,080,863 10.75%, 1/15/13 3,900,000 4,738,500 12%, 10/22/15 17,234,000,000 COP 8,620,873 - -------------------------------------------------------------------------------- Colombia (Republic of) Nts., 8.25%, 12/22/14 3,283,000 3,750,828 - -------------------------------------------------------------------------------- Colombia (Republic of) Unsec. Nts., 7.375%, 1/27/17 960,000 1,043,040 - -------------------------------------------------------------------------------- EEB International Ltd., Sr. Unsec. Bonds, 8.75%, 10/31/14 13 3,330,000 3,546,450 -------------- 26,959,326 - -------------------------------------------------------------------------------- COSTA RICA--0.0% Costa Rica (Republic of) Unsec. Bonds, 9.995%, 8/1/20 1,498,000 1,934,293 - -------------------------------------------------------------------------------- DENMARK--0.1% Denmark (Kingdom of) Bonds, 5%, 11/15/13 24,345,000 DKK 5,168,957 - -------------------------------------------------------------------------------- DOMINICAN REPUBLIC--0.1% Dominican Republic Unsec. Unsub. Bonds, Series REG S, 9.04%, 1/23/18 2 1,721,439 1,781,689 - -------------------------------------------------------------------------------- Dominican Republic Unsec. Unsub. Nts., 9.50%, 9/27/11 2 307,398 315,083 -------------- 2,096,772 - -------------------------------------------------------------------------------- EGYPT--0.2% Egypt (The Arab Republic of) Treasury Bills, Series 364, 8.371%, 1/6/09 12 9,800,000 EGP 1,736,937
F13 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- EGYPT Continued Egypt (The Arab Republic of) Unsec. Unsub. Bonds, 8.75%, 7/15/12 13 28,530,000 EGP $ 5,186,544 -------------- 6,923,481 - -------------------------------------------------------------------------------- EL SALVADOR--0.1% El Salvador (Republic of) Bonds: 7.625%, 9/21/34 2 590,000 628,350 7.65%, 6/15/35 13 4,570,000 4,752,800 -------------- 5,381,150 - -------------------------------------------------------------------------------- FRANCE--2.0% France (Government of) Obligations Assimilables du Tresor Bonds: 3.25%, 4/25/16 17,170,000 EUR 24,420,631 4%, 10/25/38 12,900,000 EUR 17,204,299 - -------------------------------------------------------------------------------- France (Government of) Treasury Nts.: 3.75%, 1/12/13 20,685,000 EUR 31,195,712 4.50%, 7/12/12 8,190,000 EUR 12,757,852 -------------- 85,578,494 - -------------------------------------------------------------------------------- GERMANY--1.9% Germany (Federal Republic of) Bonds: Series 03, 3.75%, 7/4/13 20,130,000 EUR 30,502,113 Series 05, 4%, 1/4/37 12,385,000 EUR 16,902,286 Series 07, 4.25%, 7/4/17 22,660,000 EUR 34,901,659 -------------- 82,306,058 - -------------------------------------------------------------------------------- GHANA--0.1% Ghana (Republic of) Bonds, 8.50%, 10/4/17 2 3,500,000 3,613,750 - -------------------------------------------------------------------------------- GREECE--0.3% Greece (Republic of) Bonds, 4.60%, 5/20/13 9,140,000 EUR 14,035,082 - -------------------------------------------------------------------------------- GUATEMALA--0.1% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 13 250,000 286,250 10.25%, 11/8/11 2,150,000 2,461,750 -------------- 2,748,000 - -------------------------------------------------------------------------------- INDONESIA--0.6% Indonesia (Republic of) Nts.: 6.75%, 3/10/14 13 7,620,000 7,543,800 6.90%, 1/17/18 13 4,490,000 4,245,901 7.25%, 4/20/15 13 4,870,000 4,906,525 - -------------------------------------------------------------------------------- Indonesia (Republic of) Sr. Unsec. Nts., 7.75%, 1/17/38 13 2,880,000 2,721,600 - -------------------------------------------------------------------------------- Indonesia (Republic of) Unsec. Nts., 8.50%, 10/12/35 13 6,700,000 6,850,750 -------------- 26,268,576
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- ISRAEL--0.4% Israel (State of) Bonds: 5.50%, 2/28/17 24,370,000 ILS $ 7,098,058 Series 2682, 7.50%, 3/31/14 25,080,000 ILS 8,122,384 -------------- 15,220,442 - -------------------------------------------------------------------------------- ITALY--0.5% Italy (Republic of) Nts., Certificati di Credito del Tesoro, 4.20%, 7/1/09 1 12,195,000 EUR 19,196,843 - -------------------------------------------------------------------------------- JAPAN--5.0% Japan (Government of) Bonds: 2 yr., Series 269, 0.90%, 6/15/10 6,331,000,000 JPY 59,788,107 5 yr., Series 72, 1.50%, 6/20/13 7,262,000,000 JPY 69,448,068 10 yr., Series 277, 1.60%, 3/20/16 8 3,308,000,000 JPY 31,730,133 10 yr., Series 279, 2%, 3/20/16 1,176,000,000 JPY 11,603,986 20 yr., Series 61, 1%, 3/20/23 8 1,968,000,000 JPY 16,269,949 20 yr., Series 73, 2%, 12/20/24 8 1,476,000,000 JPY 13,818,924 20 yr., Series 75, 2.10%, 3/20/25 8 820,000,000 JPY 7,775,254 -------------- 210,434,421 - -------------------------------------------------------------------------------- MALAYSIA--0.1% Johor Corp. Malaysia (Government of) Bonds, Series P3, 1%, 7/31/12 2 7,980,000 MYR 2,906,259 - -------------------------------------------------------------------------------- Malaysia (Government of) Bonds, Series 2/05, 4.72%, 9/30/15 4,570,000 MYR 1,393,028 -------------- 4,299,287 - -------------------------------------------------------------------------------- MEXICO--1.5% United Mexican States Bonds: Series A, 6.375%, 1/16/13 3,800,000 4,009,000 Series M7, 8%, 12/24/08 1 240,660,000 MXN 23,306,200 Series MI10, 8%, 12/19/13 126,490,000 MXN 11,756,370 Series M20, 10%, 12/5/24 1 45,000,000 MXN 4,637,948 - -------------------------------------------------------------------------------- United Mexican States Bonds., 8.375%, 1/14/11 18,960,000 20,780,160 -------------- 64,489,678 - -------------------------------------------------------------------------------- NEW ZEALAND--0.2% New Zealand (Government of) Bonds, 7%, 7/15/09 8,865,000 NZD 6,764,562 - -------------------------------------------------------------------------------- NIGERIA--0.9% Nigeria (Federal Republic of) Nts., Series 3Y2S, 12.50%, 2/24/09 60,500,000 NGN 522,247 - -------------------------------------------------------------------------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 85,211 83,779 - -------------------------------------------------------------------------------- Nigeria (Federal Republic of) Treasury Bills: Series 364, 9.186%, 1/8/09 2,12 773,700,000 NGN 6,242,662 Series 364, 9.170%, 2/5/09 12 605,400,000 NGN 4,850,291 Series 364, 9.300%, 4/9/09 12 175,100,000 NGN 1,378,180
F14 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- NIGERIA Continued Nigeria (Federal Republic of) Treasury Bonds: Series 3Y, 9.23%, 5/25/12 624,300,000 NGN $ 5,179,759 Series 3Y1S, 15%, 1/27/09 2 116,700,000 NGN 1,018,766 Series 5 yr., 9.50%, 2/23/12 2 278,300,000 NGN 2,338,556 Series 5Y, 9.50%, 8/31/12 2 623,000,000 NGN 5,224,496 Series 5Y13, 12.99%, 9/29/11 142,800,000 NGN 1,345,397 Series 7Y16, 11.99%, 12/22/13 236,500,000 NGN 2,147,901 Series 7YR, 12.74%, 10/27/13 317,100,000 NGN 2,960,659 Series 10 yr., 9.35%, 8/31/17 2 600,000,000 NGN 4,507,066 -------------- 37,799,759 - -------------------------------------------------------------------------------- PANAMA--0.6% Panama (Republic of) Bonds: 6.70%, 1/26/36 8,540,000 8,710,800 7.25%, 3/15/15 8,225,000 8,883,000 8.875%, 9/30/27 1,375,000 1,742,813 9.375%, 4/1/29 655,000 859,688 - -------------------------------------------------------------------------------- Panama (Republic of) Unsec. Bonds, 7.125%, 1/29/26 2,760,000 2,925,600 -------------- 23,121,901 - -------------------------------------------------------------------------------- PERU--1.6% Peru (Republic of) Bonds: 7.84%, 8/12/20 28,080,000 PEN 10,047,122 9.91%, 5/5/15 10,351,000 PEN 4,081,873 Series 7, 8.60%, 8/12/17 27,250,000 PEN 10,207,087 Series 8-1, 12.25%, 8/10/11 52,015,000 PEN 20,825,759 - -------------------------------------------------------------------------------- Peru (Republic of) Certificates of Deposit: 3.925%, 10/20/08 2,12 8,461,000 PEN 2,788,602 4.066%, 4/13/09 2,12 604,000 PEN 194,591 4.163%, 7/9/09 2,12 12,692,000 PEN 4,088,654 5.045%, 7/3/08 2,12 2,557,000 PEN 863,232 5.713%, 1/5/09 12 28,800,000 PEN 9,403,883 5.719%, 11/6/08 12 11,490,000 PEN 3,793,271 - -------------------------------------------------------------------------------- Peru (Republic of) Sr. Nts., 4.533%, 2/28/16 12 371,484 249,303 -------------- 66,543,377 - -------------------------------------------------------------------------------- PHILIPPINES--0.5% Philippines (Republic of the) Unsec. Bonds: 7.75%, 1/14/31 13,277,000 13,824,012 9%, 2/15/13 7,625,000 8,406,563 -------------- 22,230,575 - -------------------------------------------------------------------------------- POLAND--0.0% Poland (Republic of) Bonds, Series WS0922, 5.75%, 9/23/22 1,000,000 PLZ 433,636 - -------------------------------------------------------------------------------- SUPRANATIONAL--0.0% European Investment Bank: Sr. Unsec. Nts., Series 0979/0100, 6.25%, 9/30/10 975,000 NZD 723,190 - -------------------------------------------------------------------------------- Sr. Unsec. Nts., 6.75%, 11/17/08 1,300,000 NZD 986,013 -------------- 1,709,203
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- THE NETHERLANDS--0.2% Netherlands (Kingdom of the) Bonds, 5%, 7/15/11 3,925,000 EUR $ 6,218,054 - ---------------------------------------------------------------------------------- Netherlands (Kingdom of the) Nts., 4.50%, 7/15/17 2,290,000 EUR 3,529,266 ---------------- 9,747,320 - ---------------------------------------------------------------------------------- TURKEY--1.8% Turkey (Republic of) Bonds: 6.75%, 4/3/18 10,035,000 9,382,725 7%, 9/26/16 6,560,000 6,314,000 14%, 1/19/11 1 15,250,000 TRY 10,948,284 - ---------------------------------------------------------------------------------- Turkey (Republic of) Bonds.: 15.861%, 10/7/09 12 18,240,000 TRY 11,539,032 16%, 3/7/12 1 42,895,000 TRY 28,706,945 18.163%, 8/13/08 12 6,630,000 TRY 5,307,142 - ---------------------------------------------------------------------------------- Turkey (Republic of) Nts., 7.25%, 3/15/15 4,115,000 4,078,994 ---------------- 76,277,122 - ---------------------------------------------------------------------------------- UKRAINE--0.2% Bayerische Hypo- und Vereinsbank AG for the City of Kiev, Ukraine Nts., 8.625% 7/15/11 2 8,210,000 8,127,900 - ---------------------------------------------------------------------------------- UNITED KINGDOM--0.7% United Kingdom Treasury Bonds: 5%, 3/7/18 4,395,000 GBP 8,672,257 6%, 12/7/28 9,135,000 GBP 20,402,009 ---------------- 29,074,266 - ---------------------------------------------------------------------------------- URUGUAY--0.4% Uruguay (Oriental Republic of) Bonds: 4.25%, 4/5/27 48,300,000 UYU 2,730,114 7.625%, 3/21/36 3,525,000 3,627,225 - ---------------------------------------------------------------------------------- Uruguay (Oriental Republic of) Unsec. Bonds: 5%, 9/14/18 54,110,000 UYU 3,532,635 8%, 11/18/22 7,030,000 7,539,675 ---------------- 17,429,649 - ---------------------------------------------------------------------------------- VENEZUELA--0.7% Venezuela (Republic of) Bonds: 9%, 5/7/23 1,080,000 950,400 9.25%, 9/15/27 14,610,000 13,748,010 - ---------------------------------------------------------------------------------- Venezuela (Republic of) Nts., 10.75%, 9/19/13 6,875,000 7,167,188 - ---------------------------------------------------------------------------------- Venezuela (Republic of) Unsec. Bonds, 7.65%, 4/21/25 7,445,000 6,008,301 ---------------- 27,873,899 ---------------- Total Foreign Government Obligations (Cost $1,075,498,131) 1,079,375,968
F15 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--16.6% - ---------------------------------------------------------------------------------- AAC Group Holding Corp., 0%/10.25% Sr. Unsec. Disc. Nts., 10/1/12 14 $ 100,000 $ 96,000 - ---------------------------------------------------------------------------------- AES Dominicana Energia Finance SA, 11% Sr. Nts., 12/13/15 13 2,758,000 2,744,210 - ---------------------------------------------------------------------------------- AES Panama SA, 6.35% Sr. Nts., 12/21/16 13 1,100,000 1,107,319 - ---------------------------------------------------------------------------------- AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A, 11/30/19 246,016 256,472 - ---------------------------------------------------------------------------------- Albertson's, Inc., 8% Sr. Unsec. Debs., 5/1/31 3,080,000 3,171,374 - ---------------------------------------------------------------------------------- Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 1,100,000 1,075,250 - ---------------------------------------------------------------------------------- Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16 2,065,000 2,013,375 - ---------------------------------------------------------------------------------- Allied Waste North America, Inc., 7.375% Sr. Sec. Nts., Series B, 4/15/14 3,075,000 3,136,500 - ---------------------------------------------------------------------------------- Alrosa Finance SA, 8.875% Nts., 11/17/14 13 13,025,000 14,001,875 - ---------------------------------------------------------------------------------- AmBev International Finance Co. Ltd., 9.50% Bonds, 7/24/17 13 5,050,000 BRR 2,590,996 - ---------------------------------------------------------------------------------- AMC Entertainment, Inc., 8% Sr. Unsec. Sub. Nts., 3/1/14 895,000 798,788 - ---------------------------------------------------------------------------------- America Movil SAB de CV: 8.46% Bonds, 12/18/36 13 13,500,000 MXN 1,075,487 8.46% Sr. Unsec. Unsub. Bonds, 12/18/36 39,200,000 MXN 3,122,894 - ---------------------------------------------------------------------------------- American Media Operations, Inc.: 8.875% Sr. Unsec. Sub. Nts., 1/15/11 2 5,454 4,581 8.875% Sr. Unsec. Sub. Nts., 1/15/11 150,000 120,750 10.25% Sr. Unsec. Sub. Nts., Series B, 5/1/09 13 45,450 36,815 10.25% Sr. Unsec. Sub. Nts., Series B, 5/1/09 1,250,000 1,009,375 - ---------------------------------------------------------------------------------- American Tower Corp.: 7.125% Sr. Unsec. Nts., 10/15/12 215,000 218,225 7.50% Sr. Nts., 5/1/12 2,135,000 2,167,025 - ---------------------------------------------------------------------------------- ATA Holdings Corp., 13% Sr. Unsec. Nts., 2/1/09 2,3,4 735,000 -- - ---------------------------------------------------------------------------------- Atlas Energy Resources LLC, 10.75% Sr. Nts., 2/1/18 13 2,850,000 2,978,250 - ---------------------------------------------------------------------------------- Atlas Pipeline Partners LP, 8.125% Sr. Unsec. Nts., 12/15/15 1,910,000 1,886,125 - ---------------------------------------------------------------------------------- Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/26 13 4,936,418 4,911,736
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ---------------------------------------------------------------------------------- Avis Budget Car Rental LLC, 7.625% Sr. Unsec. Unsub. Nts., 5/15/14 $ 2,030,000 $ 1,634,150 - ---------------------------------------------------------------------------------- BA Covered Bond Issuer, 4.25% Sec. Nts., 4/5/17 3,700,000 EUR 5,246,550 - ---------------------------------------------------------- ----------------------- Banco Bilbao Vizcaya Argentaria SA, 4.25% Sec. Bonds, 7/15/14 2,790,000 EUR 4,133,759 - ---------------------------------------------------------- ----------------------- Banco BMG SA, 9.15% Nts., 1/15/16 13 3,520,000 3,590,400 - ---------------------------------------------------------------------------------- Banco de Credito del Peru, 6.95% Sub. Nts., 11/7/21 1,13 1,345,000 1,345,000 - ---------------------------------------------------------------------------------- Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 4/27/16 13 1,585,000 1,180,825 - ---------------------------------------------------------------------------------- Banco Invex SA, 25.874% Mtg. Backed Certificates, Series 062U, 3/13/34 1,15 4,963,442 MXN 1,997,735 - ---------------------------------------------------------------------------------- Banco Pine SA, 7.375% Sr. Unsec. Nts., 6/17/10 13 4,020,000 4,014,975 - ---------------------------------------------------------------------------------- Bank of Scotland plc: 4.375% Sr. Sec. Nts., 7/13/16 13,825,000 EUR 19,895,340 4.50% Sr. Sec. Nts., 7/13/21 6,440,000 EUR 8,999,645 - ---------------------------------------------------------------------------------- Barclays Bank plc, 6.278% Perpetual Bonds 16 6,850,000 5,659,265 - ---------------------------------------------------------------------------------- Bausch & Lomb, Inc., 9.875% Sr. Unsec. Nts., 11/1/15 13 1,095,000 1,103,213 - ---------------------------------------------------------------------------------- BE Aerospace, Inc., 8.50% Sr. Unsec. Nts., 7/1/18 8 745,000 747,794 - ---------------------------------------------------------------------------------- Berry Petroleum Co., 8.25% Sr. Sub. Nts., 11/1/16 905,000 923,100 - ---------------------------------------------------------------------------------- Berry Plastics Holding Corp., 8.875% Sr. Sec. Nts., 9/15/14 3,360,000 2,923,200 - ---------------------------------------------------------------------------------- Biomet, Inc., 10% Sr. Unsec. Bonds, 10/15/17 13 1,190,000 1,276,275 - ---------------------------------------------------------------------------------- Braskem Finance Ltd., 7.25% Sr. Unsec. Nts., 6/5/18 13 5,350,000 5,323,250 - ---------------------------------------------------------------------------------- C10 Capital SPV Ltd., 6.722% Unsec. Perpetual Debs. 13,16 4,630,000 4,265,494 - ---------------------------------------------------------------------------------- Case New Holland, Inc., 7.125% Sr. Unsec. Nts., 3/1/14 4,150,000 4,087,750 - ---------------------------------------------------------------------------------- Catalent Pharma Solutions, Inc., 9.50% Sr. Unsec. Nts., 4/15/15 17 2,065,000 1,858,500 - ---------------------------------------------------------------------------------- CCH I Holdings LLC/CCH I Holdings Capital Corp., 11% Sr. Sec. Nts., 10/1/15 2,355,000 1,757,419 - ---------------------------------------------------------------------------------- CCM Merger, Inc., 8% Unsec. Nts., 8/1/13 13 1,335,000 1,144,763 - ---------------------------------------------------------------------------------- CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts., 10/1/07 2,3,4 400,000 -- - ---------------------------------------------------------------------------------- Centex Corp., 5.80% Sr. Unsec. Nts., 9/15/09 2 1,250,000 1,193,750
F16 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ---------------------------------------------------------------------------------- Chesapeake Energy Corp., 6.875% Sr. Unsec. Nts., 1/15/16 $ 4,145,000 $ 4,020,650 - ---------------------------------------------------------------------------------- Church & Dwight Co., Inc., 6% Sr. Unsec. Sub. Nts., 12/15/12 1,030,000 993,950 - ---------------------------------------------------------------------------------- Cinemark, Inc., 0%/9.75% Sr. Unsec. Nts., 3/15/14 14 2,035,000 1,943,425 - ---------------------------------------------------------------------------------- Citigroup, Inc., 8.40% Perpetual Bonds, Series E 16 2,695,000 2,565,263 - ---------------------------------------------------------------------------------- Citizens Communications Co., 6.25% Sr. Nts., 1/15/13 4,880,000 4,550,600 - ---------------------------------------------------------------------------------- Claire's Stores, Inc., 10.50% Sr. Unsec. Sub. Nts., 6/1/17 4,760,000 1,963,500 - ---------------------------------------------------------------------------------- Cloverie plc, 7.053% Sec. Nts., Series 2005-93, 12/20/10 1,2 1,100,000 918,940 - ---------------------------------------------------------------------------------- Community Health Systems, Inc., 8.875% Sr. Unsec. Nts., 7/15/15 1,440,000 1,456,200 - ---------------------------------------------------------------------------------- Constellation Brands, Inc.: 8.125% Sr. Sub. Nts., 1/15/12 1,780,000 1,780,000 8.375% Sr. Nts., 12/15/14 995,000 1,012,413 - ---------------------------------------------------------------------------------- Copano Energy LLC/Copano Energy Finance Corp., 7.75% Sr. Nts., 6/1/18 13 2,720,000 2,665,600 - ---------------------------------------------------------------------------------- Coriolanus Ltd.: 3.359% Pass-Through Sec. Nts., 12/31/17 2,12 23,130,000 BRR 9,234,109 10.62% Sec. Nts., 8/10/10 2 3,300,000 1,947,000 - ---------------------------------------------------------------------------------- Corrections Corp. of America: 6.25% Sr. Unsec. Sub. Nts., 3/15/13 255,000 246,713 7.50% Sr. Nts., 5/1/11 1,575,000 1,590,750 - ---------------------------------------------------------------------------------- Credit Suisse First Boston International, Export-Import Bank of Ukraine, 8.40% Sec. Nts., 2/9/16 4,340,000 3,916,850 - ---------------------------------------------------------------------------------- Crown Americas, Inc., 7.75% Sr. Nts., 11/15/15 3,050,000 3,065,250 - ---------------------------------------------------------------------------------- Dali Capital plc/Bank of Moscow, 7.25% Sec. Nts., Series 28, Tranche 1, 11/25/09 37,000,000 RUR 1,545,962 - ---------------------------------------------------------------------------------- Dali Capital SA (ROSBANK), 8% Sec. Nts., Series 23, Tranche 1, 9/30/09 36,400,000 RUR 1,509,253 - ---------------------------------------------------------------------------------- DaVita, Inc., 6.625% Sr. Unsec. Nts., 3/15/13 3,620,000 3,493,300 - ---------------------------------------------------------------------------------- Dayton Superior Corp., 13% Sr. Unsec. Sub. Nts., 6/15/09 155,000 126,713 - ---------------------------------------------------------------------------------- Del Monte Corp., 8.625% Sr. Sub. Nts., 12/15/12 1,245,000 1,269,900 - ---------------------------------------------------------------------------------- Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 3,599,000 4,252,456 - ---------------------------------------------------------------------------------- Denbury Resources, Inc., 7.50% Sr. Sub. Nts., 12/15/15 1,190,000 1,190,000
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ---------------------------------------------------------------------------------- Depfa ACS Bank, 3.875% Sec. Nts., 11/14/16 710,000 EUR $ 1,025,632 - ---------------------------------------------------------------------------------- Dex Media West LLC/Dex Media West Finance Co.: 8.50% Sr. Nts., 8/15/10 300,000 297,750 9.875% Sr. Sub. Nts., 8/15/13 586,000 528,865 - ---------------------------------------------------------------------------------- Dex Media, Inc., 0%/9% Unsec. Nts., 11/15/13 14 400,000 288,000 - ---------------------------------------------------------------------------------- Dillard's, Inc., 6.625% Unsec. Nts., 11/15/08 2 790,000 790,988 - ---------------------------------------------------------------------------------- Dole Food Co., Inc.: 7.25% Sr. Unsec. Nts., 6/15/10 100,000 91,000 8.625% Sr. Nts., 5/1/09 306,000 292,995 8.875% Sr. Unsec. Nts., 3/15/11 71,000 63,545 - ---------------------------------------------------------------------------------- DRS Technologies, Inc., 6.625% Sr. Nts., 2/1/16 2,020,000 2,060,400 - ---------------------------------------------------------------------------------- EchoStar DBS Corp., 6.375% Sr. Unsec. Nts., 10/1/11 2,710,000 2,621,925 - ---------------------------------------------------------------------------------- Edison Mission Energy, 7% Sr. Unsec. Nts., 5/15/17 2,775,000 2,608,500 - ---------------------------------------------------------------------------------- Eirles Two Ltd.: 4.692% Sec. Nts., Series 335, 4/30/12 1,2 6,300,000 5,339,250 6.082% Sec. Nts., Series 324, 4/30/12 1,2 4,100,000 3,325,100 - ---------------------------------------------------------------------------------- Eletropaulo Metropolitana SA, 19.125% Nts., 6/28/10 13 1,115,000 BRR 749,431 - ---------------------------------------------------------------------------------- Elizabeth Arden, Inc., 7.75% Sr. Unsec. Sub. Nts., 1/15/14 1,090,000 1,027,325 - ---------------------------------------------------------------------------------- Enterprise Products Operating LP, 8.375% Jr. Sub. Nts., 8/1/66 1 3,475,000 3,481,856 - ---------------------------------------------------------------------------------- Exodus Communications, Inc., 10.75% Sr. Nts., 12/15/09 2,3,4 337,947 EUR -- - ---------------------------------------------------------------------------------- Exsportfinans ASA, 3.50% Nts., 2/11/11 1 19,880,000 EUR 28,473,777 - ---------------------------------------------------------- ----------------------- FairPoint Communications, Inc., 13.125% Sr. Nts., 4/1/18 3,015,000 2,969,775 - ---------------------------------------------------------------------------------- Fiserv, Inc., 6.125% Sr. Unsec. Unsub. Nts., 11/20/12 3,210,000 3,230,509 - ---------------------------------------------------------------------------------- Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 1,790,000 1,807,900 - ---------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., 8.375% Sr. Nts., 4/1/17 4,675,000 4,939,792 - ---------------------------------------------------------------------------------- Fresenius Medical Care Capital Trust IV, 7.875% Sr. Sub. Nts., 6/15/11 1,225,000 1,274,000 - ---------------------------------------------------------------------------------- GameStop Corp., 8% Sr. Unsec. Nts., 10/1/12 320,000 328,000 - ---------------------------------------------------------------------------------- Gazprom Capital SA: 7.288% Sr. Unsec. Nts., 8/16/37 13 14,680,000 13,285,400 8.146% Sr. Unsec. Bonds, 4/11/18 2 7,950,000 8,586,000 8.625% Sr. Unsec. Nts., 4/28/34 13 7,930,000 8,757,892
F17 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - --------------------------------------------------------------------------------- Gazprom International SA, 7.201% Unsec. Bonds, 2/1/20 13 $ 1,969,043 $ 1,969,043 - --------------------------------------------------------------------------------- General Motors Acceptance Corp., 8% Bonds, 11/1/31 3,840,000 2,505,143 - --------------------------------------------------------------------------------- Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 3,805,000 3,238,645 - --------------------------------------------------------------------------------- Goodyear Tire & Rubber Co. (The): 7.857% Nts., 8/15/11 1,110,000 1,108,613 9% Sr. Unsec. Nts., 7/1/15 705,000 706,763 - --------------------------------------------------------------------------------- Graham Packaging Co., Inc., 9.875% Sr. Unsec. Sub. Nts., 10/15/14 2,590,000 2,305,100 - --------------------------------------------------------------------------------- Graphic Packaging International Corp., 8.50% Sr. Nts., 8/15/11 3,025,000 2,941,813 - --------------------------------------------------------------------------------- Greektown Holdings, Inc., 10.75% Sr. Nts., 12/1/13 4,13 1,955,000 1,456,475 - --------------------------------------------------------------------------------- GTL Trade Finance, Inc., 7.25% Sr. Unsec. Nts., 10/20/17 13 5,620,000 5,661,004 - --------------------------------------------------------------------------------- Harrah's Operating Co., Inc., 10.75% Sr. Unsec. Nts., 2/1/16 13 3,705,000 3,093,675 - --------------------------------------------------------------------------------- HBOS plc, 6.413% Sub. Perpetual Bonds, Series A 13,16 6,600,000 4,630,890 - --------------------------------------------------------------------------------- HCA, Inc.: 6.375% Nts., 1/15/15 2,680,000 2,237,800 9.25% Sr. Sec. Nts., 11/15/16 1,430,000 1,476,475 - --------------------------------------------------------------------------------- HealthSouth Corp., 10.75% Sr. Unsec. Nts., 6/15/16 1,785,000 1,927,800 - --------------------------------------------------------------------------------- Helix Energy Solutions Group, Inc., 9.50% Sr. Unsec. Nts., 1/15/16 13 1,785,000 1,838,550 - --------------------------------------------------------------------------------- Hertz Corp.: 8.875% Sr. Unsec. Nts., 1/1/14 610,000 561,200 10.50% Sr. Unsec. Sub. Nts., 1/1/16 1,135,000 1,038,525 - --------------------------------------------------------------------------------- HSBC Bank plc: 11.601% Sr. Unsec. Nts., 1/12/10 12 2,510,000 2,092,336 12.278% Sr. Unsec. Nts., 3/9/09 12 1,960,000 1,874,936 9.751% Sr. Unsec. Nts., 7/8/09 12 1,960,000 1,957,844 - --------------------------------------------------------------------------------- HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35 1 5,800,000 4,659,836 - --------------------------------------------------------------------------------- HSBK Europe BV: 7.25% Unsec. Unsub. Nts., 5/3/17 13 1,360,000 1,190,000 9.25% Sr. Nts., 10/16/13 13 15,930,000 16,089,300 - --------------------------------------------------------------------------------- Huntsman International LLC: 7.375% Sr. Unsub. Nts., 1/15/15 790,000 695,200 7.875% Sr. Unsec. Sub. Nts., 11/15/14 375,000 345,000 - --------------------------------------------------------------------------------- Huntsman LLC: 11.50% Sr. Unsec. Nts., 7/15/12 1 198,000 206,415 11.625% Sr. Unsec. Nts., 10/15/10 2 13,000 13,455 - --------------------------------------------------------------------------------- ICICI Bank Ltd.: 6.375% Bonds, 4/30/22 1,13 6,960,000 6,253,184 6.625% Nts., 10/3/12 13 6,620,000 6,541,050
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - --------------------------------------------------------------------------------- Idearc, Inc., 8% Sr. Unsec. Nts., 11/15/16 $ 2,770,000 $ 1,755,488 - --------------------------------------------------------------------------------- IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24 2 8,338,058 9,296,934 - --------------------------------------------------------------------------------- Inter-American Development Bank: 6.26% Nts., 12/8/09 1 920,000 BRR 581,062 9.891% Nts., 1/25/12 1,2 706,857,153 COP 398,516 - --------------------------------------------------------------------------------- Invista, Inc., 9.25% Sr. Nts., 5/1/12 13 815,000 837,413 - --------------------------------------------------------------------------------- Iron Mountain, Inc., 8.625% Sr. Unsec. Sub. Nts., 4/1/13 1,765,000 1,782,650 - --------------------------------------------------------------------------------- ISA Capital do Brasil SA: 7.875% Sr. Nts., 1/30/12 13 1,130,000 1,172,375 8.80% Sr. Nts., 1/30/17 13 1,410,000 1,469,925 - --------------------------------------------------------------------------------- Isle of Capri Casinos, Inc., 7% Sr. Unsec. Sub. Nts., 3/1/14 5,225,000 3,709,750 - --------------------------------------------------------------------------------- Ispat Inland ULC, 9.75% Sr. Sec. Nts., 4/1/14 1,015,000 1,085,124 - --------------------------------------------------------------------------------- Israel Electric Corp. Ltd., 7.25% Nts., 1/15/19 13 8,015,000 8,204,811 - --------------------------------------------------------------------------------- iStar Financial, Inc., 3.326% Sr. Unsec. Nts., 3/16/09 1 1,595,000 1,510,768 - --------------------------------------------------------------------------------- Jarden Corp., 7.50% Sr. Unsec. Sub. Nts., 5/1/17 1,635,000 1,430,625 - --------------------------------------------------------------------------------- JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1 16 2,530,000 2,379,288 - --------------------------------------------------------------------------------- JPMorgan Hipotecaria su Casita: 6.47% Sec. Nts., 8/26/35 2 6,175,587 MXN 571,052 21.982% Mtg. Backed Certificates, Series 06U, 9/25/35 1 2,958,406 MXN 1,187,757 - --------------------------------------------------------------------------------- JPMorgan Securities Ltd., Red Square Capital Ltd., 9% Collateralized Debt Obligation Nts., 11/20/08 13 62,000,000 RUR 2,479,508 - --------------------------------------------------------------------------------- JSC Astana Finance, 9.16% Nts., 3/14/12 2 7,200,000 6,734,287 - --------------------------------------------------------------------------------- K. Hovnanian Enterprises, Inc.: 7.75% Sr. Unsec. Sub. Nts., 5/15/13 495,000 319,275 8.875% Sr. Sub. Nts., 4/1/12 890,000 654,150 - --------------------------------------------------------------------------------- Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 400,000 406,000 - --------------------------------------------------------------------------------- Kazmunaigaz Finance Sub BV, 9.125% Nts., 7/2/18 2,8 14,880,000 14,954,400 - --------------------------------------------------------------------------------- KB Home, 8.625% Sr. Sub. Nts., 12/15/08 250,000 252,500 - --------------------------------------------------------------------------------- Key Energy Services, Inc., 8.375% Sr. Nts., 12/1/14 13 1,765,000 1,809,125 - --------------------------------------------------------------------------------- Kinder Morgan Energy Partners LP, 7.30% Sr. Unsec. Nts., 8/15/33 3,396,000 3,488,819 - --------------------------------------------------------------------------------- Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 2 510,000 538,050
F18 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - -------------------------------------------------------------------------------- L-3 Communications Corp.: 5.875% Sr. Sub. Nts., 1/15/15 $ 975,000 $ 904,313 6.375% Sr. Unsec. Sub. Nts., Series B, 10/15/15 1,070,000 1,005,800 - -------------------------------------------------------------------------------- Lamar Media Corp., 6.625% Sr. Unsec. Sub. Nts., 8/15/15 1,275,000 1,166,625 - -------------------------------------------------------------------------------- Lear Corp., 8.75% Sr. Unsec. Nts., Series B, 12/1/16 4,895,000 3,842,575 - -------------------------------------------------------------------------------- Leslie's Poolmart, Inc., 7.75% Sr. Unsec. Nts., 2/1/13 2 1,180,000 1,109,200 - -------------------------------------------------------------------------------- Levi Strauss & Co., 9.75% Sr. Unsec. Unsub. Nts., 1/15/15 2,685,000 2,711,850 - -------------------------------------------------------------------------------- Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 550,000 506,000 - -------------------------------------------------------------------------------- Majapahit Holding BV: 7.25% Nts., 10/17/11 13 1,990,000 1,992,488 7.75% Nts., 10/17/16 13 4,230,000 4,055,513 - -------------------------------------------------------------------------------- MarkWest Energy Partners LP, 8.75% Sr. Nts., 4/15/18 13 390,000 400,725 - -------------------------------------------------------------------------------- Marquee Holdings, Inc., 9.505% Sr. Nts., 8/15/14 1 2,010,000 1,587,900 - -------------------------------------------------------------------------------- Mashantucket Pequot Tribe, 8.50% Bonds, Series A, 11/15/15 13 2,690,000 2,387,375 - -------------------------------------------------------------------------------- MediaNews Group, Inc.: 6.375% Sr. Sub. Nts., 4/1/14 1,330,000 551,950 6.875% Sr. Unsec. Sub. Nts., 10/1/13 2,240,000 929,600 - -------------------------------------------------------------------------------- MGM Mirage, Inc.: 6.625% Sr. Unsec. Nts., 7/15/15 1,835,000 1,481,763 8.375% Sr. Unsec. Sub. Nts., 2/1/11 2,050,000 1,988,500 - -------------------------------------------------------------------------------- MHP SA, 10.25% Sr. Sec. Sub. Bonds, 11/30/11 13 1,360,000 1,346,400 - -------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority: 6.125% Sr. Unsec. Sub. Nts., 2/15/13 1,770,000 1,619,550 8% Sr. Sub. Nts., 4/1/12 2,680,000 2,465,600 - -------------------------------------------------------------------------------- Momentive Performance Materials, Inc., 9.75% Sr. Unsec. Nts., 12/1/14 13 4,515,000 3,882,900 - -------------------------------------------------------------------------------- Moog, Inc., 7.25% Sr. Sub. Nts., 6/15/18 195,000 194,025 - -------------------------------------------------------------------------------- Mosaic Co. (The): 7.375% Sr. Nts., 12/1/14 13 1,180,000 1,239,000 7.625% Sr. Nts., 12/1/16 13 1,355,000 1,449,850 - -------------------------------------------------------------------------------- National Gas Co., 6.05% Nts., 1/15/36 13 3,470,000 3,190,877 - -------------------------------------------------------------------------------- National Power Corp.: 5.875% Unsec. Unsub. Bonds, 12/19/16 109,600,000 PHP 1,989,376 6.875% Nts., 11/2/16 13 1,474,000 1,420,568 9.625% Unsec. Bonds, 5/15/28 2,550,000 2,913,375
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - -------------------------------------------------------------------------------- Newfield Exploration Co., 6.625% Sr. Unsec. Sub. Nts., 9/1/14 $ 1,805,000 $ 1,705,725 - -------------------------------------------------------------------------------- NewPage Corp., 10% Sr. Sec. Nts., 5/1/12 1,665,000 1,694,138 - -------------------------------------------------------------------------------- Nextel Communications, Inc., 7.375% Sr. Nts., Series D, 8/1/15 8,905,000 7,395,941 - -------------------------------------------------------------------------------- Nielsen Finance LLC/Nielsen Finance Co.: 0%/12.50% Sr. Unsec. Sub. Disc. Nts., 8/1/16 14 1,725,000 1,194,563 10% Sr. Unsec. Nts., 8/1/14 2,195,000 2,222,438 - -------------------------------------------------------------------------------- Nortek, Inc., 8.50% Sr. Unsec. Unsub. Nts., 9/1/14 1,090,000 703,050 - -------------------------------------------------------------------------------- NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 2,3,4 200,173 -- - -------------------------------------------------------------------------------- Novelis, Inc., 7.25% Sr. Unsec. Nts., 2/15/15 1 1,620,000 1,539,000 - -------------------------------------------------------------------------------- NTK Holdings, Inc., 0%/10.75% Sr. Unsec. Nts., 3/1/14 14 2,170,000 998,200 - -------------------------------------------------------------------------------- NTL Cable plc, 9.125% Sr. Nts., 8/15/16 2,605,000 2,455,213 - -------------------------------------------------------------------------------- NXP BV/NXP Funding LLC, 9.50% Sr. Unsec. Unsub. Nts., 10/15/15 790,000 689,275 - -------------------------------------------------------------------------------- Omnicare, Inc.: 6.75% Sr. Sub. Nts., 12/15/13 230,000 217,350 6.875% Sr. Sub. Nts., 12/15/15 285,000 265,050 - -------------------------------------------------------------------------------- Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/10 2,3,4 90,000 -- - -------------------------------------------------------------------------------- Orion Network Systems, Inc., 12.50% Sr. Unsub. Disc. Nts., 1/15/07 2,4 675,000 7 - -------------------------------------------------------------------------------- Panama Canal Railway Co., 7% Sr. Sec. Nts., 11/1/26 13 3,665,000 3,316,825 - -------------------------------------------------------------------------------- Park Place Entertainment Corp., 7.875% Sr. Sub. Nts., 3/15/10 5,275,000 4,826,625 - -------------------------------------------------------------------------------- Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B, 3/15/13 2,970,000 2,992,275 - -------------------------------------------------------------------------------- Pemex Project Funding Master Trust, 6.625% Nts., 6/15/38 2 6,680,000 6,659,893 - -------------------------------------------------------------------------------- Penn National Gaming, Inc.: 6.75% Sr. Unsec. Sub. Nts., 3/1/15 230,000 224,250 6.875% Sr. Sub. Nts., 12/1/11 2 500,000 503,750 - -------------------------------------------------------------------------------- Petrobras International Finance Co., 5.785% Sr. Unsec. Nts., 3/1/18 10,040,000 9,717,897 - -------------------------------------------------------------------------------- Petroleum Export Ltd. Cayman SPV, 5.265% Sr. Nts., Cl. A3, 6/15/11 13 2,720,891 2,701,627
F19 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ----------------------------------------------------------------------------------- Piazza Vittoria Finance SrL, 6.712% Asset-Backed Nts., 7/20/10 1,2 154,673 EUR $ 243,526 - ----------------------------------------------------------------------------------- Pinnacle Entertainment, Inc., 8.25% Sr. Unsec. Sub. Nts., 3/15/12 2,025,000 1,999,688 - ----------------------------------------------------------------------------------- Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp., 10.625% Sr. Sub. Nts., 4/1/17 2,635,000 2,121,175 - ----------------------------------------------------------------------------------- Pokagon Gaming Authority, 10.375% Sr. Nts., 6/15/14 13 489,000 526,898 - ----------------------------------------------------------------------------------- Premier Cruise Ltd., 11% Sr. Nts., 3/15/08 2,3,4 250,000 -- - ----------------------------------------------------------------------------------- Pride International, Inc., 7.375% Sr. Unsec. Nts., 7/15/14 1,280,000 1,283,200 - ----------------------------------------------------------------------------------- PSINet, Inc., 10.50% Sr. Unsec. Nts., 12/1/06 2,3,4 100,000 EUR -- - ----------------------------------------------------------------------------------- Quicksilver Resources, Inc., 7.125% Sr. Sub. Nts., 4/1/16 1,885,000 1,764,831 - ----------------------------------------------------------------------------------- Qwest Corp., 8.875% Unsec. Unsub. Nts., 3/15/12 4,880,000 5,002,000 - ----------------------------------------------------------------------------------- R.H. Donnelley Corp.: 6.875% Sr. Disc. Nts., Series A-2, 1/15/13 1,865,000 1,119,000 6.875% Sr. Nts., 1/15/13 860,000 516,000 - ----------------------------------------------------------------------------------- Rabobank Nederland, 3% Nts., 3/11/11 1,2 15,480,000 14,203,932 - ----------------------------------------------------------------------------------- Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 600,000 511,500 - ----------------------------------------------------------------------------------- Rainbow National Services LLC, 8.75% Sr. Nts., 9/1/12 13 670,000 683,400 - ----------------------------------------------------------------------------------- RBS Global & Rexnord Corp., 11.75% Sr. Unsec. Sub. Nts., 8/1/16 640,000 617,600 - ----------------------------------------------------------------------------------- ReAble Therapeutics Finance LLC, 10.875% Sr. Unsec. Nts., 11/15/14 13 1,865,000 1,869,663 - ----------------------------------------------------------------------------------- Real Time Data Co., 11% Nts., 5/31/09 2,4,17 142,981 -- - ----------------------------------------------------------------------------------- Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13 1,805,000 1,875,751 - ----------------------------------------------------------------------------------- RSHB Capital SA/OJSC Russian Agricultural Bank, 7.75% Nts., 5/29/18 13 2,010,000 1,979,850 - ----------------------------------------------------------------------------------- Rural Cellular Corp., 9.875% Sr. Nts., 2/1/10 2 1,400,000 1,431,500 - ----------------------------------------------------------------------------------- Sabine Pass LNG LP: 7.25% Sr. Sec. Nts., 11/30/13 1,425,000 1,303,875 7.50% Sr. Sec. Nts., 11/30/16 2,065,000 1,868,825 - ----------------------------------------------------------------------------------- Salisbury International Investments Ltd., 6.968% Sec. Nts., Series 2006-003, Tranche E, 7/20/11 1,2 1,100,000 988,020
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ----------------------------------------------------------------------------------- Sally Holdings LLC: 9.25% Sr. Unsec. Nts., 11/15/14 $ 1,340,000 $ 1,293,100 10.50% Sr. Unsec. Sub. Nts., 11/15/16 1,190,000 1,139,425 - ----------------------------------------------------------------------------------- SandRidge Energy, Inc., 8% Sr. Nts., 6/1/18 13 475,000 479,750 - ----------------------------------------------------------------------------------- Select Medical Corp., 7.625% Sr. Unsec. Sub. Nts., 2/1/15 2,265,000 1,998,863 - ----------------------------------------------------------------------------------- Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15 1,985,000 1,900,638 - ----------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., 8% Sr. Unsec. Sub. Nts., 3/15/12 1,267,000 1,279,670 - ----------------------------------------------------------------------------------- SLM Corp., 4.50% Nts., Series A, 7/26/10 3,445,000 3,189,698 - ----------------------------------------------------------------------------------- Smithfield Foods, Inc., 7% Sr. Nts., 8/1/11 2 1,215,000 1,114,763 - ----------------------------------------------------------------------------------- Southwestern Energy Co., 7.50% Sr. Nts., 2/1/18 13 780,000 807,215 - ----------------------------------------------------------------------------------- Sprint Capital Corp., 8.75% Nts., 3/15/32 2,520,000 2,406,096 - ----------------------------------------------------------------------------------- Station Casinos, Inc., 6.50% Sr. Unsec. Sub. Nts., 2/1/14 3,710,000 2,151,800 - ----------------------------------------------------------------------------------- Steel Dynamics, Inc., 7.375% Sr. Unsec. Unsub. Nts., 11/1/12 13 785,000 788,925 - ----------------------------------------------------------------------------------- Stena AB, 7.50% Sr. Unsec. Nts., 11/1/13 65,000 64,431 - ----------------------------------------------------------------------------------- Telefonica del Peru SA, 8% Sr. Unsec. Bonds, 4/11/16 13 3,290,100 PEN 1,176,204 - ----------------------------------------------------------------------------------- Teligent, Inc., 11.50% Sr. Nts., 12/1/08 2,3,4 500,000 -- - ----------------------------------------------------------------------------------- Tengizchevroil LLP, 6.124% Nts., 11/15/14 13 1,971,495 1,907,421 - ----------------------------------------------------------------------------------- Tesoro Corp., 6.625% Sr. Unsec. Nts., 11/1/15 1,870,000 1,734,425 - ----------------------------------------------------------------------------------- TGI International Ltd., 9.50% Nts., 10/3/17 13 6,100,000 6,549,875 - ----------------------------------------------------------------------------------- Tiers-BSP, 0%/8.60% Collateralized Trust, Cl. A, 6/15/97 2,14 2,695,000 1,334,564 - ----------------------------------------------------------------------------------- Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,000,000 972,500 - ----------------------------------------------------------------------------------- Travelport LLC, 11.875% Sr. Unsec. Sub. Nts., 9/1/16 545,000 449,625 - ----------------------------------------------------------------------------------- Trump Entertainment Resorts, Inc., 8.50% Sec. Nts., 6/1/15 1,240,000 778,100 - ----------------------------------------------------------------------------------- United Rentals, Inc., 7% Sr. Sub. Nts., 2/15/14 3,635,000 2,835,300 - ----------------------------------------------------------------------------------- Universal Hospital Services, Inc., 8.50% Sr. Sec. Nts., 6/1/15 17 1,905,000 1,914,525 - ----------------------------------------------------------------------------------- US Oncology Holdings, Inc., 7.949% Sr. Unsec. Nts., 3/15/12 1,17 580,000 461,100
F20 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ----------------------------------------------------------------------------------- US Oncology, Inc., 9% Sr. Unsec. Nts., 8/15/12 $ 1,945,000 $ 1,940,138 - ----------------------------------------------------------------------------------- Vail Resorts, Inc., 6.75% Sr. Sub. Nts., 2/15/14 575,000 546,250 - ----------------------------------------------------------------------------------- Vanguard Health Holding Co. I LLC, 0%/11.25% Sr. Nts., 10/1/15 14 2,775,000 2,455,875 - ----------------------------------------------------------------------------------- Vedanta Resources plc, 9.50% Sr. Unsec. Nts., 7/18/18 2,8 9,460,000 9,436,350 - ----------------------------------------------------------------------------------- Videotron Ltd., 9.125% Sr. Nts., 4/15/18 13 935,000 981,750 - ----------------------------------------------------------------------------------- VIP Finance Ireland Ltd., 9.125% Bonds, 4/30/18 13 6,680,000 6,587,816 - ----------------------------------------------------------------------------------- Virgin Media Finance plc, 8.75% Sr. Unsec. Nts., 4/15/14 1,570,000 1,483,650 - ----------------------------------------------------------------------------------- VTB Capital SA, 6.315% Sub. Unsec. Nts., 2/4/15 16,280,000 16,203,891 - ----------------------------------------------------------------------------------- Warner Music Group Corp., 7.375% Sr. Sub. Bonds, 4/15/14 500,000 418,125 - ----------------------------------------------------------------------------------- West Corp., 9.50% Sr. Unsec. Nts., 10/15/14 970,000 877,850 - ----------------------------------------------------------------------------------- William Lyon Homes, Inc.: 7.50% Sr. Unsec. Nts., 2/15/14 160,000 82,400 10.75% Sr. Nts., 4/1/13 1,390,000 757,550 - ----------------------------------------------------------------------------------- Williams Cos., Inc. (The): 7.625% Nts., 7/15/19 1,895,000 1,999,225 8.125% Sr. Unsec. Nts., 3/15/12 1,915,000 2,020,325 - ----------------------------------------------------------------------------------- Windstream Corp.: 8.125% Sr. Unsec. Unsub. Nts., 8/1/13 2,755,000 2,761,888 8.625% Sr. Unsec. Unsub. Nts., 8/1/16 1,780,000 1,784,450 - ----------------------------------------------------------------------------------- Winstar Communications, Inc., 12.75% Sr. Nts., 4/15/10 2,3,4 250,000 -- - ----------------------------------------------------------------------------------- WM Covered Bond Program: 3.875% Sec. Nts., Series1, 9/27/11 8,930,000 EUR 12,895,733 4% Sec. Mtg. Nts., Series 2, 9/27/16 10,930,000 EUR 14,080,932 - ----------------------------------------------------------------------------------- WMG Holdings Corp., 0%/9.50% Sr. Nts., 12/15/14 14 2,057,000 1,306,195 - ----------------------------------------------------------------------------------- Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625% Nts., 12/1/14 4,140,000 3,808,800 -------------- Total Corporate Bonds and Notes (Cost $729,856,920) 701,379,930
SHARES - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- PREFERRED STOCKS--0.1% - ----------------------------------------------------------------------------------- AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg. 2,3,17 4,253 -- - ----------------------------------------------------------------------------------- Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 2,3 5,000 -- - ---------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- PREFERRED STOCKS Continued - ----------------------------------------------------------------------------------- Federal National Mortgage Assn., 8.25% Non-Cum. Sub., Series S, Non-Vtg. 148,310 $ 3,403,715 - --------------------------------------------------------------------------------- ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 2,3,17 151 -- - --------------------------------------------------------------------------------- Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 2 4,600 447,350 --------------- Total Preferred Stocks (Cost $ 4,667,966) 3,851,065 - --------------------------------------------------------------------------------- COMMON STOCKS -- 0.5% - --------------------------------------------------------------------------------- Arco Capital Corp. Ltd. 2,3 690,638 10,359,570 - --------------------------------------------------------------------------------- AT&T, Inc. 74,252 2,501,550 - --------------------------------------------------------------------------------- ATA Holdings Corp. 2,3 1,721 1,721 - --------------------------------------------------------------------------------- Constellation Energy Group, Inc. 51,195 4,203,110 - --------------------------------------------------------------------------------- Global Aero Logistics, Inc. 2,3 447 447 - --------------------------------------------------------------------------------- Premier Holdings Ltd. 2,3 18,514 -- - --------------------------------------------------------------------------------- Public Service Enterprise Group, Inc. 33,160 1,523,039 - --------------------------------------------------------------------------------- Revlon, Inc., Cl. A 3 1,341,666 1,140,416 - --------------------------------------------------------------------------------- Societe des Autoroutes Paris-Rhin-Rhone 6,994 663,788 --------------- Total Common Stocks (Cost $ 21,934,830) 20,393,641
UNITS - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - --------------------------------------------------------------------------------- Global Aero Logistics, Inc. Wts., Strike Price $10, Exp. 2/28/11 2,3 266 3 - --------------------------------------------------------------------------------- MHP SA, GDR Wts., Strike Price $0.01, Exp. 5/8/09 3 56,610 1,047,285 --------------- Total Rights, Warrants and Certificates (Cost $2,025) 1,047,288
PRINCIPAL AMOUNT - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- STRUCTURED SECURITIES--7.3% - ----------------------------------------------------------------------------------- Barclays Bank plc: Custom Basket of African Currencies Cv. Unsec. Unsub. Nts., 10.25%, 5/15/09 13 $ 3,030,000 3,199,377 Custom Basket of African Currencies Cv. Unsec. Unsub. Nts., 10.25%, 5/7/09 13 3,030,000 3,212,709 - ----------------------------------------------------------------------------------- Citibank NA New York: Dominican Republic Credit Linked Nts., 12%, 2/22/11 13 22,200,000 DOP 577,069 Dominican Republic Credit Linked Nts., 14.218%, 5/11/09 12 61,180,000 DOP 1,577,991
F21 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ STRUCTURED SECURITIES Continued - ------------------------------------------------------------------------------------ Citigroup Funding, Inc., Custom Basket of African Currencies Credit Linked Nts., 0%, 4/29/09 12 $ 6,070,000 $ 6,392,742 - ------------------------------------------------------------------------------------ Citigroup Global Markets Holdings, Inc.: Brazil (Federal Republic of) Unsec. Credit Linked Nts., 14.809%, 1/5/10 12 2,480,096 BRR 1,247,517 Colombia (Republic of) Credit Linked Bonds, 11%, 7/27/20 1,060,000,000 COP 503,324 Colombia (Republic of) Credit Linked Nts., Series II, 15%, 4/27/12 552,359,546 COP 307,013 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 1,200,000,000 COP 666,985 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 1,034,000,000 COP 574,719 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 927,000,000 COP 515,246 Dominican Republic Credit Linked Bonds, 9.85%, 11/10/08 12 22,620,000 DOP 629,171 Dominican Republic Credit Linked Nts., 22%, 10/3/11 25,600,000 DOP 842,018 Dominican Republic Unsec. Credit Linked Nts., 12.047%, 2/23/09 12 48,100,000 DOP 1,304,366 Dominican Republic Unsec. Credit Linked Nts., 13.182%, 2/23/09 12 90,800,000 DOP 2,415,460 Dominican Republic Unsec. Credit Linked Nts., 15%, 3/12/12 49,300,000 DOP 1,384,250 Dominican Republic Unsec. Credit Linked Nts., 9.342%, 8/11/08 12 57,100,000 DOP 1,647,776 Egypt (The Arab Republic of) Credit Linked Nts., 5.765%, 2/5/09 12 18,110,000 EGP 3,191,121 Egypt (The Arab Republic of) Credit Linked Nts., 6.089%, 3/5/09 12 12,920,000 EGP 2,252,873 Egypt (The Arab Republic of) Credit Linked Nts., 6.267%, 3/26/09 12 17,610,000 EGP 3,041,201 Egypt (The Arab Republic of) Credit Linked Nts., 6.641%, 2/19/09 12 17,850,000 EGP 3,124,900 Egypt (The Arab Republic of) Credit Linked Nts., 7.01%, 10/30/08 12 13,540,000 EGP 2,453,301 Egypt (The Arab Republic of) Credit Linked Nts., 7.024%, 7/10/08 12 13,060,000 EGP 2,442,281 Egypt (The Arab Republic of) Credit Linked Nts., 7.812%, 4/16/09 12 7,100,000 EGP 1,218,633
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ STRUCTURED SECURITIES Continued - ------------------------------------------------------------------------------------ Egypt (The Arab Republic of) Credit Linked Nts., 7.981%, 4/2/09 12 8,140,000 EGP $ 1,402,873 Egypt (The Arab Republic of) Credit Linked Nts., 8%, 4/2/09 12 14,190,000 EGP 2,445,549 Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 6.529%, 3/26/09 12 17,690,000 EGP 3,055,017 Ghana (Republic of) Credit Linked Nts., 13.50%, 4/2/10 2,990,000 GHS 2,565,718 Nigeria (Federal Republic of) Credit Linked Nts., 11.488%, 9/11/08 12 153,600,000 NGN 1,276,230 Nigeria (Federal Republic of) Credit Linked Nts., 14.50%, 3/1/11 1,13 347,000,000 NGN 3,286,096 Nigeria (Federal Republic of) Credit Linked Nts., Series II, 14.50%, 4/4/11 2 265,000,000 NGN 2,517,944 Renins Nonlife Ltd. Credit Linked Nts., 12.50%, 5/30/12 2 4,878,314 4,390,483 Russian Federation Credit Linked Nts., 7.65%, 12/4/08 1,2 21,350,000 RUR 901,165 Russian Federation Credit Linked Nts., Series 2, 7.50%, 12/4/08 1,2 50,900,000 RUR 2,148,444 Ukraine Hryvnia Unsec. Credit Linked Nts., 11.94%, 1/2/10 880,000 UAH 204,601 Zambia (Republic of) Credit Linked Nts., 11.399%, 6/11/09 12 2,165,000,000 ZMK 612,928 Zimbabwe (Republic of) Credit Linked Nts., 10.076%, 11/26/08 12 1,810,000,000 ZMK 546,208 Zimbabwe (Republic of) Credit Linked Nts., 10.717%, 3/4/09 12 3,850,000,000 ZMK 1,127,732 Zimbabwe (Republic of) Credit Linked Nts., 10.793%, 2/25/09 12 3,850,000,000 ZMK 1,125,482 - ------------------------------------------------------------------------------------ Credit Suisse First Boston International: Boryspil Airport Total Return Linked Nts., 10%, 4/19/10 1 4,840,000 UAH 980,380 EESRRU Total Return Linked Nts., 7.10%, 12/12/08 1,2 37,100,000 RUR 1,565,958 EESRRU Total Return Linked Nts., 8.25%, 6/22/10 1,2 93,500,000 RUR 4,014,321 Gazprom Total Return Linked Nts., 6.79%, 10/29/09 73,800,000 RUR 3,181,613 Gazprom Total Return Linked Nts., Series 002, 6.95%, 8/6/09 72,600,000 RUR 3,174,018 Indonesia (Republic of) Total Return Linked Nts., 12%, 9/16/11 14,800,000,000 IDR 1,572,556 Moitk Total Return Linked Nts., 9.014%, 3/26/11 1,2 59,900,000 RUR 2,477,249
F22 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ STRUCTURED SECURITIES Continued - ------------------------------------------------------------------------------------ Credit Suisse First Boston International: Continued NAK Naftogaz of Ukraine Credit Linked Nts., 5%, 1/20/09 $ 3,890,000 $ 3,885,721 Oreniz Total Return Linked Nts., 9.24%, 2/21/12 1,2 116,835,000 RUR 4,953,918 RuRail Total Return Linked Nts., 6.67%, 1/22/09 1,2 49,210,000 RUR 2,112,778 Ukraine (Republic of) Credit Linked Nts., Series EMG 13, 11.94%, 12/30/09 2 2,195,000 UAH 488,632 Vietnam Shipping Industry Group Total Return Linked Nts., 10.50%, 1/19/17 2 14,609,000,000 VND 508,139 - ------------------------------------------------------------------------------------ Credit Suisse First Boston, Inc. (Nassau Branch): Russian Specialized Construction and Installation Administration Credit Linked Nts., 13%, 5/20/10 1,2 97,250,000 RUR 4,082,032 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 2 5,650,000 UAH 1,257,755 Ukraine (Republic of) Credit Linked Nts., Series EMG 11, 11.94%, 12/30/09 2 661,000 UAH 147,146 Ukraine (Republic of) Credit Linked Nts., Series NPC 12, 11.94%, 12/30/09 2 4,170,000 UAH 928,290 - ------------------------------------------------------------------------------------ Credit Suisse Group, Russian Moscoblgaz Finance Total Return Linked Nts., 9.25%, 6/24/12 2 106,500,000 RUR 4,336,347 - ------------------------------------------------------------------------------------ Credit Suisse International, EESRRU Total Return Linked Nts., 8.25%, 6/22/10 1,2 54,200,000 RUR 2,327,018 - ------------------------------------------------------------------------------------ Deutsche Bank AG: Argentina (Republic of) Credit Linked Nts., 12.281%, 12/21/11 2,990,000 ARP 2,511,857 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.09%, 1/5/11 2 11,032,544 MXN 1,067,086 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.65%, 1/5/11 2 7,310,656 MXN 707,099 Brazil Real Credit Linked Nts., 13.882%, 3/3/10 12 4,580,760 BRR 2,264,706 Brazil Real Total Return Linked Nts., 6%, 8/18/10 2,065,000 BRR 2,182,452 Colombia (Republic of) Credit Linked Nts., 13.50%, 9/16/14 2,002,000,000 COP 1,078,506 Colombia (Republic of) Total Return Linked Bonds, Series 002, 11%, 7/28/20 6,840,000,000 COP 3,248,562
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ STRUCTURED SECURITIES Continued - ------------------------------------------------------------------------------------ Deutsche Bank AG: Continued EESRRU Total Return Linked Nts., Series FSK3, 7.10%, 12/16/08 1 50,530,000 RUR $ 2,167,749 Egypt (The Arab Republic of) Total Return Linked Nts., 7.725%, 9/16/08 12 17,350,000 EGP 3,192,472 European Investment Bank, Russian Federation Credit Linked Nts., 5.502%, 1/19/10 2,12 705,000 644,652 Grupo TMM SA Credit Linked Nts., 6%, 9/7/12 2 2,180,069 2,158,268 Halyk Bank of Kazakhstan Total Return Linked Nts., Series I, 7.25%, 3/24/09 258,990,000 KZT 2,106,439 Indonesia (Republic of) Credit Linked Nts., 9.50%, 6/22/15 820,000 690,727 Indonesia (Republic of) Credit Linked Nts., Series III, 14.25%, 6/22/13 873,600 917,752 Moscow (City of) Total Return Linked Nts., Series II, 9%, 4/22/11 21,590,000 RUR 946,283 Nigeria (Federal Republic of) Credit Linked Nts., 12.50%, 2/24/09 67,900,000 NGN 610,100 Nigeria (Federal Republic of) Credit Linked Nts., 15%, 1/27/09 91,000,000 NGN 842,531 Opic Reforma I Credit Linked Nts., Cl. 1A, 9.928%, 8/4/14 1,2 14,850,000 MXN 1,439,916 Opic Reforma I Credit Linked Nts., Cl. 1B, 9.928%, 8/4/14 1,2 2,970,000 MXN 287,983 Opic Reforma I Credit Linked Nts., Cl. 2A, 11.428%, 5/22/15 1,2 1,417,014 MXN 137,399 Opic Reforma I Credit Linked Nts., Cl. 2B, 11.428%, 5/22/15 1,2 2,479,100 MXN 240,384 Opic Reforma I Credit Linked Nts., Cl. 2C, 11.428%, 5/22/15 1,2 37,378,810 MXN 3,624,401 Peru (Republic of) Credit Linked Nts., 4.249%, 2/20/11 1 875,000 887,024 Rosselkhozbank Total Return Linked Nts., 7.919%, 3/20/09 12 45,900,000 RUR 1,839,570 Rosselkhozbank Total Return Linked Nts., 7.949%, 1/15/09 12 86,420,000 RUR 3,520,594 Rosselkhozbank Total Return Linked Nts., Series 2, 7.948%, 1/16/09 12 59,560,000 RUR 2,426,976 RuRail Total Return Linked Nts., 0%, 12/4/09 12 19,221,000 RUR 840,828 RuRail Total Return Linked Nts., 6.67%, 1/26/09 1 75,090,000 RUR 3,203,098 Sberbank Total Return Linked Nts., 7.375%, 5/7/09 12 96,070,000 RUR 3,799,645 Sberbank Total Return Linked Nts., 7.406%, 6/9/09 12 38,430,000 RUR 1,507,239 Ukraine (Republic of) 5 yr. Credit Linked Nts., 4.05%, 8/25/10 885,000 873,442
F23 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- STRUCTURED SECURITIES Continued - --------------------------------------------------------------------------------------- Deutsche Bank AG: Continued Ukraine (Republic of) 5.5 yr. Credit Linked Nts., 4.05%, 3/1/11 $ 885,000 $ 864,026 Ukraine (Republic of) 6 yr. Credit Linked Nts., 4.05%, 8/29/11 885,000 855,795 Ukraine (Republic of) 6.5 yr. Credit Linked Nts., 4.05%, 2/29/12 885,000 846,777 Ukraine (Republic of) 7 yr. Credit Linked Nts., 4.05%, 8/30/12 885,000 838,051 Ukraine (Republic of) Credit Linked Nts., 11.94%, 1/4/10 955,000 UAH 208,328 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 269,000 UAH 58,681 United Mexican States Credit Linked Nts., 9.52%, 1/5/11 2 7,306,298 MXN 706,677 Videocon International Ltd. Credit Linked Nts., 6.26%, 12/29/09 1,630,000 1,530,391 - --------------------------------------------------------------------------------------- Deutsche Bank AG Singapore, Vietnam Shipping Industry Group Total Return Linked Nts., 9%, 4/20/17 36,800,000,000 VND 1,015,509 - --------------------------------------------------------------------------------------- Dresdner Bank AG, Lukoil Credit Linked Nts., Series 3, 7.04%, 12/12/11 1,13 34,190,000 RUR 1,612,369 - --------------------------------------------------------------------------------------- Goldman Sachs & Co., Turkey (Republic of) Credit Linked Nts., 14.802%, 3/29/17 12,13 21,980,000 TRY 3,130,762 - --------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP, Colombia (Republic of) Credit Linked Nts., 10.476%, 2/8/37 12,13 63,720,800,000 COP 266,405 - --------------------------------------------------------------------------------------- Goldman Sachs International, Rosselkhozbank Total Return Linked Nts., 8%, 5/13/09 1 84,500,000 RUR 3,624,578 - --------------------------------------------------------------------------------------- Hallertau SPC, Philippines (Republic of) Credit Linked Nts., Series 2007-01, 5.244%, 12/20/17 1,2 14,290,000 12,768,115 - --------------------------------------------------------------------------------------- Hallertau SPC Segregated Portfolio, Brazil (Federal Republic of) Credit Linked Nts., Series 2008-01, 9.888%, 8/2/10 2,12 14,401,313 BRR 7,287,346 - --------------------------------------------------------------------------------------- ING Bank NV, Ukraine (Republic of) Credit Linked Nts., Series 725, 11.89%, 12/30/09 2 4,689,000 UAH 1,047,091 - --------------------------------------------------------------------------------------- JPMorgan Chase Bank NA: Brazil (Federal Republic of) Credit Linked Nts., 10.291%, 5/16/45 13 1,445,000 BRR 1,432,110
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- STRUCTURED SECURITIES Continued - --------------------------------------------------------------------------------------- JPMorgan Chase Bank NA: Continued Brazil (Federal Republic of) Credit Linked Nts., 14.35%, 2/20/12 2 5,770,000 BRR $ 3,134,610 Brazil (Federal Republic of) Credit Linked Nts., 15.326%, 1/2/15 12 10,948,600 BRR 2,777,530 Brazil (Federal Republic of) Credit Linked Nts., Series III, 12.184%, 1/2/15 2,12 5,245,000 BRR 1,330,594 Colombia (Republic of) Credit Linked Bonds, 10.190%, 1/5/16 12,13 20,100,000,000 COP 3,682,812 Colombia (Republic of) Credit Linked Bonds, 10.218%, 10/31/16 2,12 12,177,000,000 COP 1,976,575 Colombia (Republic of) Credit Linked Bonds, Series A, 10.218%, 10/31/16 2,12 12,125,000,000 COP 1,968,134 Peru (Republic of) Credit Linked Nts., 8.115%, 9/2/15 12,13 3,470,000 PEN 688,376 Swaziland (Kingdom of) Credit Linked Nts., 7.25%, 6/20/10 13 1,120,000 1,185,184 - --------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Brazil (Federal Republic of) Credit Linked Nts., 6.357%, 4/20/11 12,13 15,965,000 BRR 8,331,756 Microvest Capital Management LLC Credit Linked Nts., 7.55%, 5/24/12 2 7,541,026 7,541,026 - --------------------------------------------------------------------------------------- Merrill Lynch: Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16 2 1,784,000,000 COP 736,535 Renaissance Capital International Services Ltd. Total Return Linked Nts., 10.50%, 10/7/08 2 80,000,000 RUR 3,376,729 - --------------------------------------------------------------------------------------- Morgan Stanley: Credit Linked Nts., 6.25%, 3/23/17 2 4,885,000 PEN 1,418,572 Russian Federation Total Return Linked Securities, Series 007, Cl. VR, 5%, 8/22/34 100,001,822 RUR 3,480,519 - --------------------------------------------------------------------------------------- Morgan Stanley & Co. International Ltd./Red Arrow International Leasing plc Total Return Linked Nts., Series A, 8.375%, 7/09/12 2 23,634,035 RUR 1,007,648
F24 | OPPENHEIMER STRATEGIC BOND FUND/VA
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- STRUCTURED SECURITIES Continued - --------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: Brazil (Federal Republic of) Credit Linked Nts., 12.551%, 1/5/22 12,13 28,914,000 BRR $ 2,326,683 Brazil (Federal Republic of) Credit Linked Nts., 14.40%, 8/4/16 2 5,793,682 BRR 4,593,456 Eurokommerz Total Return Linked Nts., Series 1, 13.62%, 10/19/09 1 319,000,000 RUR 13,600,715 Russian Federation Total Return Linked Nts., 13.62%, 10/19/09 1 179,000,000 RUR 7,631,749 Ukraine (Republic of) Credit Linked Nts., 4.511%, 10/15/17 1,13 8,300,000 7,719,000 Ukraine (Republic of) Credit Linked Nts., Series 2, 5.728%, 10/15/17 1,2 6,800,000 6,477,000 United Mexican States Credit Linked Nts., 5.64%, 11/20/15 13 2,000,000 2,003,002 WTI Trading Ltd. Total Return Linked Nts., Series A, 15%, 3/8/12 2 4,146,764 3,980,893 WTI Trading Ltd. Total Return Linked Nts., Series C, 15%, 3/8/12 2 5,536,558 5,315,096 - --------------------------------------------------------------------------------------- UBS AG: Egypt (The Arab Republic of) Credit Linked Nts., 7.298%, 4/29/09 2,12 14,040,000 EGP 2,423,434 Egypt (The Arab Republic of) Credit Linked Nts., 7.449%, 11/26/08 2,12 13,930,000 EGP 2,493,211 Egypt (The Arab Republic of) Credit Linked Nts., 7.808%, 4/15/09 2,12 7,090,000 EGP 1,226,457 Egypt (The Arab Republic of) Credit Linked Nts., Series 2, 7.540%, 4/22/09 2,12 7,030,000 EGP 1,213,443 Ghana (Republic of) Credit Linked Nts., 14.47%, 12/28/11 2 1,222,052 GHS 1,031,279 --------------- Total Structured Securities (Cost $ 302,678,762) 309,053,153 - --------------------------------------------------------------------------------------- CATASTROPHE/EVENT-LINKED BONDS--1.0% - --------------------------------------------------------------------------------------- Aiolos Ltd. Catastrophe Linked Nts., 9.491%, 4/8/09 1,13 800,000 EUR 1,264,320 - --------------------------------------------------------------------------------------- Akibare Ltd. Catastrophe Linked Nts., Cl. A, 5.608%, 5/22/12 1,13 738,000 743,461 - --------------------------------------------------------------------------------------- Calabash Re Ltd. Catastrophe Linked Nts., Cl. A-1, 11.138%, 6/1/09 1,13 1,750,000 1,770,125
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- CATASTROPHE/EVENT-LINKED BONDS Continued - --------------------------------------------------------------------------------------- Cascadia Ltd. Catastrophe Linked Nts., 6.682%, 8/31/09 1,2 $ 1,130,000 $ 1,143,673 - --------------------------------------------------------------------------------------- Cat-Mex Ltd. Catastrophe Linked Nts., Cl. A, 5.066%, 5/19/09 1,13 1,950,000 1,933,620 - --------------------------------------------------------------------------------------- Champlain Ltd. Catastrophe Linked Nts., Series A, 15.478%, 1/7/09 1,13 940,000 947,755 - --------------------------------------------------------------------------------------- Eurus Ltd. Catastrophe Linked Nts., 9.163%, 4/8/09 1,13 1,400,000 1,406,300 - --------------------------------------------------------------------------------------- Fhu-Jin Ltd. Catastrophe Linked Nts., Cl. B, 6.684%, 8/10/11 1,13 1,630,000 1,657,873 - --------------------------------------------------------------------------------------- Foundation Re II Ltd. Catastrophe Linked Nts., 12.519%, 1/8/09 1,13 926,000 920,189 - --------------------------------------------------------------------------------------- Foundation Re Ltd. Catastrophe Linked Nts., 6.819%, 11/24/08 1,13 1,000,000 975,900 - --------------------------------------------------------------------------------------- Fusion 2007 Ltd. Catastrophe Linked Nts., 8.719%, 5/19/09 1,13 2,600,000 2,593,370 - --------------------------------------------------------------------------------------- GlobeCat Ltd. Catastrophe Linked Nts., 4.788%, 12/30/08 1 2,150,000 2,150,753 - --------------------------------------------------------------------------------------- Lakeside Re Ltd. Catastrophe Linked Nts., 9.301%, 12/31/09 1,13 3,000,000 3,116,400 - --------------------------------------------------------------------------------------- Medquake Ltd. Catastrophe Linked Nts., 7.776%, 5/31/10 1,13 1,250,000 1,254,563 - --------------------------------------------------------------------------------------- Midori Ltd. Catastrophe Linked Nts., 5.463%, 10/24/12 1,13 1,600,000 1,615,360 - --------------------------------------------------------------------------------------- Muteki Ltd. Catastrophe Linked Nts., 7.078%, 5/24/11 1,2 2,100,000 2,100,525 - --------------------------------------------------------------------------------------- Nelson Re Ltd. Catastrophe Linked Nts., Series 2007-I, Cl. A, 14.358%, 6/21/10 1,13 2,290,000 2,284,504 - --------------------------------------------------------------------------------------- Osiris Capital plc Catastrophe Linked Combined Mortality Index Nts., Series D, 7.713%, 1/15/10 1,13 890,000 895,919 - --------------------------------------------------------------------------------------- Redwood Capital X Ltd. Catastrophe Linked Nts., Series C, 7.46%, 1/9/09 1,2 360,000 360,882 - --------------------------------------------------------------------------------------- Residential Reinsurance 2007 Ltd. Catastrophe Linked Nts.: Series CL2, 14.149%, 6/6/11 1,2 2,590,000 2,590,000 Series CL3, 14.932%, 6/7/10 1,13 1,000,000 1,003,700 - --------------------------------------------------------------------------------------- VASCO Re 2006 Ltd. Catastrophe Linked Nts., 11.173%, 6/5/09 1,13 1,550,000 1,544,808 - --------------------------------------------------------------------------------------- Vega Capital Ltd. Catastrophe Linked Nts., Series D, 0%, 6/24/11 2,12 4,205,000 4,205,000
F25 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- CATASTROPHE/EVENT-LINKED BONDS Continued - --------------------------------------------------------------------------------- Willow Re Ltd. Catastrophe Linked Nts., 8.024%, 6/16/10 1,13 $ 2,480,000 $ 2,490,540 --------------- Total Catastrophe/Event-Linked Bonds (Cost $ 40,523,573) 40,969,540
EXERCISE NOTIONAL DATE AMOUNT - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- SWAPTIONS PURCHASED--0.0% - --------------------------------------------------------------------------------- J Aron & Co., Swap Counterparty, Interest Rate Swap call option; Swap Terms-Receive fixed rate of 9.32% and pay floating rate based on 28 day MXN-TIIE-BANXICO; terminating 5/31/21 3,18 (Cost $333,398) 6/11/09 117,625,000 MXN 159,327
SHARES - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- INVESTMENT COMPANIES--18.0% - --------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 19,20 619,855,931 619,855,931 - --------------------------------------------------------------------------------- Oppenheimer Master Event-Linked Bond Fund, LLC 19 343,391 3,429,428 - --------------------------------------------------------------------------------- Oppenheimer Master Loan Fund, LLC 19 14,194,313 140,368,120 --------------- Total Investment Companies (Cost $768,877,833) 763,653,479 - --------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $4,312,993,720) 4,289,472,513
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--0.4% 21 - --------------------------------------------------------------------------------- Metropolitan Life Global Funding, 2.48%, 7/22/08 $ 750,000 $ 750,000 - --------------------------------------------------------------------------------- Repurchase agreement (Principal Amount/Value $18,144,100, with a maturity value of $18,145,461) with Barclays Capital, 2.70%, dated 6/30/08, to be repurchased at $18,145,461 on 7/1/08, collateralized by various securities, 0%-7.325%, 12/15/10-11/20/56, with a value of $ 18,806,982 18,144,100 18,144,100 ----------------- Total Investments Purchased with Cash Collateral from Securities Loaned ($ 18,894,100) 18,894,100 - --------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $ 4,331,887,820) 101.8% 4,308,366,613 - --------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (1.8) (78,086,586) ---------------------------------- NET ASSETS 100.0% $ 4,230,280,027 ==================================
F26 | OPPENHEIMER STRATEGIC BOND FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: ARP Argentine Peso KZT Kazakhstan Tenge AUD Australian Dollar MXN Mexican Nuevo Peso BRR Brazilian Real MYR Malaysian Ringgit CAD Canadian Dollar NGN Nigeria Naira COP Colombian Peso NZD New Zealand Dollar DKK Danish Krone PEN Peruvian New Sol DOP Dominican Republic Peso PHP Philippines Peso EGP Egyptian Pounds PLZ Polish Zloty EUR Euro RUR Russian Ruble GBP British Pound Sterling TRY New Turkish Lira GHS Ghana Cedi UAH Ukraine Hryvnia IDR Indonesia Rupiah UYU Uruguay Peso ILS Israeli Shekel VND Vietnam Dong JPY Japanese Yen ZMK Zambian Kwacha Swaption Purchased abbreviation is as follows: MXN-TIIE-BANXICO Mexican Nuevo Peso-Interbank Equilibrium Interest Rate-Banco de Mexico 1. Represents the current interest rate for a variable or increasing rate security. 2. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of June 30, 2008 was $351,896,130, which represents 8.32% of the Fund's net assets, of which $5,730,083 is considered restricted. See Note 9 of accompanying Notes. Information concerning restricted securities is as follows:
UNREALIZED ACQUISITION APPRECIATION SECURITY DATE COST VALUE (DEPRECIATION) - --------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 1A, 9.928%, 8/4/14 12/27/07 $ 1,364,764 $ 1,439,916 $ 75,152 Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 1B, 9.928%, 8/4/14 6/12/08 286,334 287,983 1,649 Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2A, 11.428%, 5/22/15 5/21/08 136,622 137,399 777 Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2B, 11.428%, 5/22/15 6/12/08 239,007 240,384 1,377 Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2C, 11.428%, 5/22/15 6/18/08 3,626,317 3,624,401 (1,916) ------------------------------------------------ $ 5,653,044 $ 5,730,083 $ 77,039 ================================================
3. Non-income producing security. 4. Issue is in default. See Note 1 of accompanying Notes. 5. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $35,671,297. See Note 6 of accompanying Notes. 6. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $26,395,300 or 0.62% of the Fund's net assets as of June 30, 2008. 7. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $201,490 or less than 0.005% of the Fund's net assets as of June 30, 2008. 8. When-issued security or delayed delivery to be delivered and settled after June 30, 2008. See Note 1 of accompanying Notes. 9. All or a portion of the security was segregated by the Fund in the amount of $3,562,000, which represented 101.12% of the market value of securities sold short. See Note 1 of accompanying Notes. 10. A sufficient amount of securities has been designated to cover outstanding foreign currency exchange contracts. See Note 5 of accompanying Notes. 11. Partial or fully-loaned security. See Note 10 of accompanying Notes. 12. Zero coupon bond reflects effective yield on the date of purchase. 13. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $313,008,771 or 7.40% of the Fund's net assets as of June 30, 2008. 14. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 15. Denotes an inflation-indexed security: coupon and principal are indexed to the consumer price index. 16. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. 17. Interest or dividend is paid-in-kind, when applicable. F27 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued 18. Swap contract terms if the option was exercised on exercise date. 19. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ------------------------------------------------------------------------------------------------------------------------ Oppenheimer Institutional Money Market Fund, Cl. E 587,306,313 1,669,323,435 1,636,773,817 619,855,931 Oppenheimer Master Event-Linked Bond Fund, LLC -- 343,391 -- 343,391 Oppenheimer Master Loan Fund, LLC 14,194,313 -- -- 14,194,313
DIVIDEND/ INTEREST REALIZED VALUE INCOME LOSS - -------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $ 619,855,931 $ 9,548,681 $ -- Oppenheimer Master Event-Linked Bond Fund, LLC 3,429,428 8,952 247 Oppenheimer Master Loan Fund, LLC 140,368,120 5,519,532 1,402,494 ------------------------------------------------ $ 763,653,479 $ 15,077,165 $ 1,402,741 ================================================
20. Rate shown is the 7-day yield as of June 30, 2008. 21. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 10 of accompanying Notes.
PRINCIPAL AMOUNT SOLD SHORT VALUE - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS SOLD SHORT--(0.1)% - -------------------------------------------------------------------------------------- Federal National Mortgage Assn., 5%, 7/1/22 8 (Proceeds $3,486,308) $ (3,562,000) $ (3,522,483)
- -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 -- quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 -- inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 -- unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* - ------------------------------------------------------------------------------------- Level 1 -- Quoted Prices $ 772,544,965 $ 10,713,113 Level 2 -- Other Significant Observable Inputs 3,502,305,274 (54,242,832) Level 3 -- Significant Unobservable Inputs 33,516,374 -- ---------------------------------- Total $ 4,308,366,613 $ (43,529,719) ==================================
*Other financial instruments include options written, currency contracts, futures, forwards, swap contracts and investments sold short. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options, swaps and investments sold short are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. F28 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
CONTRACT AMOUNT EXPIRATION UNREALIZED UNREALIZED CONTRACT DESCRIPTION BUY/SELL (000S) DATE VALUE APPRECIATION DEPRECIATION - ---------------------------------------------------------------------------------------------------------------------------- Argentine Peso (ARP) Buy 25,750 ARP 7/7/08-8/7/08 $ 8,453,489 $ 73,689 $ 8,041 Australian Dollar (AUD) Sell 15,960 AUD 8/1/08-10/10/08 15,205,763 27,095 -- Australian Dollar (AUD) Buy 21,450 AUD 7/10/08-7/22/08 20,511,694 605,799 4,348 Brazilian Real (BRR) Sell 237,440 BRR 7/2/08-8/4/08 148,010,311 530,945 537,884 Brazilian Real (BRR) Buy 454,287 BRR 7/2/08-1/5/10 281,355,681 8,842,499 744,179 British Pound Sterling (GBP) Sell 8,410 GBP 8/5/08-8/29/08 16,695,522 -- 281,021 British Pound Sterling (GBP) Buy 14,620 GBP 7/10/08-10/10/08 28,948,674 328,216 4,747 Canadian Dollar (CAD) Sell 36,265 CAD 8/1/08-10/10/08 35,527,650 275,798 -- Canadian Dollar (CAD) Buy 30,245 CAD 7/10/08-10/10/08 29,644,224 20,743 87,742 Chilean Peso (CLP) Buy 2,517,000 CLP 7/21/08-7/25/08 4,790,574 -- 319,515 Chinese Renminbi (Yuan) (CNY) Sell 56,800 CNY 7/31/08 8,316,460 -- 20,129 Chinese Renminbi (Yuan) (CNY) Buy 83,175 CNY 5/13/09-6/8/09 12,828,910 142,541 -- Colombian Peso (COP) Sell 37,586,000 COP 7/31/08-9/8/08 19,315,633 1,791,214 -- Czech Koruna (CZK) Buy 236,800 CZK 7/30/08 15,591,492 553,707 -- Euro (EUR) Sell 204,714 EUR 7/1/08-11/21/08 321,249,523 396,740 2,782,456 Euro (EUR) Buy 83,025 EUR 7/10/08-10/10/08 130,235,071 578,877 36,134 Hong Kong Dollar (HKD) Sell 63,200 HKD 7/31/08 8,111,027 -- 8,307 Hungarian Forint (HUF) Buy 1,015,000 HUF 10/2/08 6,689,433 355,986 -- Indonesia Rupiah (IDR) Buy 236,425,000 IDR 7/7/08-8/29/08 25,421,002 383,923 -- Israeli Shekel (ILS) Buy 38,000 ILS 7/30/08 11,333,811 245,713 17,607 Japanese Yen (JPY) Sell 12,564,000 JPY 7/16/08-10/10/08 118,751,595 1,703,853 900,241 Japanese Yen (JPY) Buy 11,841,916 JPY 7/1/08-10/10/08 111,850,775 626,753 2,172,948 Kuwaiti Dinar (KWD) Buy 661 KWD 1/29/09 2,502,504 37,926 -- Malaysian Ringgit (MYR) Buy 138,660 MYR 7/31/08-10/10/08 42,444,750 -- 1,053,289 Mexican Nuevo Peso (MXN) Sell 32,035 MXN 9/30/08 3,064,897 3,851 37,278 Mexican Nuevo Peso (MXN) Buy 320,570 MXN 8/22/08-8/27/08 30,828,059 279,609 8,464 New Taiwan Dollar (TWD) Sell 439,000 TWD 7/28/08-8/1/08 14,495,331 8,082 15,878 New Turkish Lira (TRY) Sell 36,775 TRY 7/31/08 29,664,287 -- 145,102 New Turkish Lira (TRY) Buy 10,425 TRY 7/31/08 8,409,251 41,134 -- New Zealand Dollar (NZD) Sell 2,330 NZD 10/10/08 1,746,626 54,162 -- New Zealand Dollar (NZD) Buy 25,175 NZD 7/16/08-8/1/08 19,117,190 37,517 181,468 Norwegian Krone (NOK) Buy 178,970 NOK 8/1/08-10/10/08 34,842,814 39,583 167,288 Peruvian New Sol (PEN) Buy 19,981 PEN 11/5/08 6,740,662 -- 354,109 Philippines Peso (PHP) Buy 366,000 PHP 7/3/08 8,150,535 -- 215,180 Polish Zloty (PLZ) Buy 126,460 PLZ 7/30/08-10/10/08 58,970,239 1,885,645 -- Qatari Riyal (QAR) Buy 8,650 QAR 1/29/09 2,419,637 -- 46,156 Russian Ruble (RUR) Buy 271,430 RUR 8/19/08 11,558,175 690,107 -- Saudi Riyal (SAR) Buy 9,110 SAR 1/29/09 2,437,533 -- 29,631 Singapore Dollar (SGD) Sell 11,050 SGD 7/31/08 8,134,034 -- 26,917 Singapore Dollar (SGD) Buy 17,290 SGD 8/1/08 12,727,936 33,987 -- South African Rand (ZAR) Sell 64,770 ZAR 7/18/08 8,228,676 -- 254,522 South African Rand (ZAR) Buy 61,800 ZAR 7/31/08 7,821,770 61,948 -- South Korean Won (KRW) Sell 3,878,000 KRW 7/7/08-8/1/08 3,702,728 9,755 -- Swedish Krona (SEK) Buy 37,765 SEK 10/10/08 6,234,851 -- 30,079 Swiss Franc (CHF) Sell 17,360 CHF 7/16/08 16,997,512 365,787 -- Swiss Franc (CHF) Buy 91,882 CHF 7/10/08-10/10/08 90,017,947 565,036 245,312 Ukraine Hryvnia (UAH) Buy 42,980 UAH 7/17/08-1/28/09 9,107,709 637,387 -- United Arab Emirates Dirham (AED) Buy 8,820 AED 1/29/09 2,417,117 -- 50,016 Vietnam Dong (VND) Buy 39,180,000 VND 1/30/09 1,956,414 -- 509,288 ----------------------------- Total unrealized appreciation and depreciation $ 22,235,607 $ 11,295,276 =============================
F29 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- FUTURES CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------- Amsterdam Exchange Index Buy 28 7/18/08 $ 3,756,904 $ (239,862) Australia (Commonwealth of) Bonds, 10 yr. Sell 69 9/15/08 6,397,821 (102,153) CAC40 10 Euro Index Sell 90 7/18/08 6,297,194 269,113 Canada (Government of) Bonds, 10 yr. Buy 199 9/19/08 22,924,909 (135,337) Cotton No. 2 Sell 54 12/8/08 2,122,740 (670) Crude Oil Buy 15 8/14/08 2,109,000 (31) Crude Oil Buy 15 8/20/08 2,108,700 (182) DAX Index Buy 33 9/19/08 8,417,042 (445,268) DAX Index Sell 55 9/19/08 14,028,403 740,802 Euro-Bundesobligation, 5 yr. Buy 19 9/8/08 3,164,373 11,146 Euro-Bundesobligation, 10 yr. Buy 61 9/8/08 10,619,344 (149,302) Euro-Bundesobligation, 10 yr. Sell 501 9/8/08 87,217,889 803,778 Euro-Schatz Buy 591 9/8/08 95,213,772 (566,695) FTSE 100 Index Sell 139 9/19/08 15,637,327 396,946 FTSE/JSE Top 40 Index (The) Sell 106 9/18/08 3,953,678 92,153 Gas/Oil Buy 16 9/11/08 2,043,600 27 Hang Seng China Enterprises Index (The) Sell 46 7/30/08 3,508,737 106,296 Heating Oil Buy 13 8/29/08 2,155,608 (254) IBEX 35 Index Buy 19 7/18/08 3,575,999 (189,145) Japanese Government 10 yr. Bonds Buy 52 9/9/08 6,622,856 53,818 Lean Hogs Sell 73 8/14/08 2,070,280 (1,260) London Metals Exchange Copper Buy 10 8/18/08 2,143,750 (15) London Metals Exchange Lead Sell 47 8/18/08 2,090,325 (70) London Metals Exchange Nickel Sell 16 8/18/08 2,101,440 (24) Mexican Bolsa Index Sell 135 9/19/08 3,905,838 27,250 NASDAQ 100 E-Mini Index Sell 379 9/19/08 13,992,680 122,694 Natural Gas Sell 16 8/27/08 2,146,880 63 Nikkei 225 Index Sell 166 9/11/08 21,057,777 999,376 OMXS30 Index Buy 545 7/18/08 7,805,171 (835,121) SGX CNX Nifty Index Sell 417 7/31/08 3,302,640 100,237 Standard & Poor's 500 E-Mini Sell 916 9/19/08 58,674,380 3,287,158 Standard & Poor's 500 Index Sell 22 9/18/08 7,046,050 409,128 Standard & Poor's/MIB Index, 10 yr. Buy 15 9/19/08 3,504,267 (131,578) U.S. Long Bonds Buy 2,473 9/19/08 285,863,344 2,649,130 U.S. Long Bonds Sell 208 9/19/08 24,043,500 (278,639) U.S. Treasury Nts., 2 yr. Buy 197 9/30/08 41,607,016 94,311 U.S. Treasury Nts., 2 yr. Sell 1,498 9/30/08 316,382,283 (938,751) U.S. Treasury Nts., 5 yr. Buy 1,892 9/30/08 209,169,470 (104,387) U.S. Treasury Nts., 5 yr. Sell 1,024 9/30/08 113,208,001 356,379 U.S. Treasury Nts., 10 yr. Buy 1,704 9/19/08 194,122,875 1,096,957 U.S. Treasury Nts., 10 yr. Sell 1,565 9/19/08 178,287,734 (815,501) United Kingdom Long Gilt Buy 119 9/26/08 24,743,372 (460,895) ---------------- $ 6,221,622 ================
F30 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------- Barclays Bank plc: Beazer Homes USA, Inc. Sell $ 1,000 4.7000% 9/20/08 $ -- $ (13,515) CDX.NA.IG.10 Index Sell 13,305 1.5500 6/20/13 (268,597) 74,937 CDX.NA.IG.10 Index Sell 5,320 1.5500 6/20/13 (118,435) 29,963 CDX.NA.IG.10 Index Sell 3,990 1.5500 6/20/13 (22,848) 22,473 Citigroup, Inc. Sell 6,550 3.2500 9/20/08 -- (169,370) Six Flags, Inc. Sell 780 7.0000 9/20/08 -- (8,358) Station Casinos, Inc. Sell 500 5.0000 6/20/13 90,000 (100,752) The Bear Stearns Cos., Inc. Sell 1,360 14.0000 9/20/08 -- 38,636 - --------------------------------------------------------------------------------------------------------------------------- Citibank NA, New York: Ambac Assurance Corp. Sell 6,455 8.4000 12/20/08 -- (550,818) Amkor Technology, Inc. Sell 335 2.0500 9/20/08 -- (176) Cablevision Systems Corp. Sell 100 3.1000 12/20/10 -- (1,460) Capmark Financial Group, Inc. Sell 2,480 7.1250 12/20/12 -- (218,411) Capmark Financial Group, Inc. Sell 1,620 9.7000 12/20/12 -- (19,492) Capmark Financial Group, Inc. Sell 1,350 9.7500 12/20/12 -- (14,249) Ford Motor Credit Co. Sell 1,800 2.3200 3/20/12 -- (425,911) Intelsat Ltd. Sell 415 4.3000 12/20/08 -- 3,517 Intelsat Ltd. Sell 430 5.0000 3/20/09 -- 6,706 Nalco Co. Sell 555 4.1700 9/20/13 -- (1,853) Nalco Co. Sell 595 3.6000 9/20/12 -- 2,748 Nortel Networks Corp. Sell 1,120 1.8900 9/20/08 -- 455 Owens-Illinois, Inc. Sell 520 2.5000 6/20/13 -- (2,125) Pakistan Sell 1,570 5.1000 3/20/13 -- 18,744 Reliant Energy, Inc. Sell 500 2.4500 9/20/11 -- (7,409) Reliant Energy, Inc. Sell 1,200 2.6000 9/20/11 -- (12,626) Republic of Hungary Buy 2,300 0.4000 12/20/15 -- 112,406 Russian Federation Sell 10,000 0.3600 1/20/11 -- (104,480) Tribune Co. Sell 520 7.6000 9/20/08 -- (8,897) Tribune Co. Sell 740 7.5000 9/20/08 -- (12,844) Tribune Co. Sell 435 5.0000 3/20/10 139,200 (113,283) Tribune Co. Sell 460 5.0000 3/20/10 150,650 (119,793) Tribune Co. Sell 520 5.0000 3/20/10 171,600 (135,418) Tribune Co. Sell 475 5.0000 3/20/10 166,250 (123,700) - --------------------------------------------------------------------------------------------------------------------------- Credit Suisse International: Aramark Corp. Sell 690 6.0000 3/20/13 -- 52,917 ArvinMeritor, Inc. Sell 995 1.4000 9/20/08 -- (11,804) ArvinMeritor, Inc. Sell 1,420 1.6000 9/20/08 -- (16,134) Capmark Financial Group, Inc Sell 790 5.2000 12/20/12 -- (114,480) Capmark Financial Group, Inc. Sell 415 6.2500 12/20/12 -- (47,271) CDX.NA.HY.10 Index Sell 11,050 5.0000 6/20/13 593,170 (671,242) CDX.NA.HY.8 Index Sell 2,876 2.7500 6/20/12 144,826 (262,333) CenturyTel, Inc. Buy 1,540 0.3775 9/20/12 -- 74,605 Charter Communications Holdings LLC Buy 235 7.0000 9/20/10 -- 38,413 Charter Communications Holdings LLC Sell 235 5.0000 9/20/17 47,000 (117,894) Charter Communications Holdings LLC Buy 285 5.0000 9/20/10 (18,169) 55,837 Charter Communications Holdings LLC Sell 285 5.0000 9/20/17 57,000 (142,977)
F31 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------- Credit Suisse International: Continued Development Bank of Kazakhstan Sell $ 8,170 3.7500% 2/20/13 $ -- $ 51,201 Dow Jones CDX.NA.HY.7 Index Sell 1,267 3.2500 12/20/11 (47,467) (64,000) El Paso Corp. Sell 435 2.8000 3/20/18 -- 9,059 Ford Motor Credit Co. Sell 3,750 2.3850 3/20/12 -- (881,156) Ford Motor Credit Co. Sell 1,150 2.5500 3/20/12 -- (265,427) GMAC LLC Sell 1,690 1.3900 3/20/17 -- (640,343) GMAC LLC Sell 3,205 5.0000 3/20/09 464,725 (34,152) Harrah's Operating Co., Inc. Sell 1,275 5.0000 3/20/10 81,281 (103,077) Intelsat Ltd. Sell 425 4.4000 3/20/09 -- 4,749 Intelsat Ltd. Sell 50 5.7500 3/20/09 -- 1,056 iStar Financial, Inc. Sell 100 4.0000 12/20/12 -- (9,586) iStar Financial, Inc. Sell 765 4.1500 12/20/12 -- (69,573) iStar Financial, Inc. Sell 410 12.0000 3/20/09 -- 15,092 Joint Stock Co. "Halyk Bank of Kazakhstan" Sell 1,600 4.9500 3/20/13 -- 11,200 Massey Energy Co. Sell 605 5.0000 3/20/13 -- 63,350 Massey Energy Co. Sell 215 5.0000 3/20/13 -- 22,513 NJSC Naftogaz Sell 2,570 3.2500 4/20/11 -- (273,147) Owens-Illinois, Inc. Sell 305 2.5000 6/20/13 -- (1,246) Republic of Turkey Buy 2,590 2.9850 4/20/13 -- (81,044) Rite Aid Corp. Sell 10 7.5000 3/20/09 -- 126 Tenet Healthcare Corp. Sell 1,365 4.0500 12/20/08 -- 8,262 Toys "R" Us, Inc. Sell 995 2.8000 9/20/08 -- (12,544) Tribune Co. Sell 370 6.3500 12/20/08 -- (8,777) TXU Corp. Sell 940 1.5300 6/20/11 -- (74,174) TXU Corp. Sell 490 1.6100 6/20/11 -- (37,657) Ukraine Sell 1,440 3.3700 6/20/13 -- (321) Univision Communications, Inc. Sell 535 14.6000 3/20/09 -- 29,467 - --------------------------------------------- --------------------------------------------------------------------------------- Deutsche Bank AG: ABX.HE.AA.06-2 Index Sell 720 0.1700 5/25/46 86,393 (573,382) ABX.HE.AAA.06-2 Index Sell 1,720 0.1100 5/25/46 85,989 (522,576) ABX.HE.AAA.06-2 Index Sell 1,720 0.1100 5/25/46 85,974 (522,576) CDX.NA.HY.10 Index Sell 15,840 5.0000 6/20/13 508,200 (960,918) CDX.NA.HY.10 Index Sell 12,740 5.0000 6/20/13 744,051 (772,859) CDX.NA.HY.9 Index Sell 7,588 3.7500 12/20/12 (15,170) (691,652) CenturyTel, Inc. Buy 1,595 0.4250 9/20/12 -- 74,434 Countrywide Home Loans, Inc. Sell 6,540 2.5500 9/20/08 -- (51,699) Countrywide Home Loans, Inc. Sell 1,305 8.5000 12/20/08 -- 36,753 Countrywide Home Loans, Inc. Sell 2,990 9.0000 12/20/08 -- 91,635 Countrywide Home Loans, Inc. Sell 2,990 9.7500 12/20/08 -- 102,775 CVRD Inco Ltd. Buy 995 0.6300 3/20/17 -- 11,505 Dow Jones CDX.NA.HY.7 Index Sell 3,579 3.2500 12/20/11 (134,056) (171,636) Ford Motor Co. Sell 2,065 6.0000 12/20/16 -- (584,678) Ford Motor Co. Sell 3,180 5.8500 12/20/16 -- (915,398) Ford Motor Co. Sell 2,540 5.8000 12/20/16 -- (735,167) Ford Motor Credit Co. Sell 2,760 2.3900 3/20/12 -- (648,180) Ford Motor Credit Co. Sell 1,300 2.3400 3/20/12 -- (306,946) General Motors Corp. Sell 1,650 4.7500 12/20/16 -- (604,966) General Motors Corp. Sell 2,035 4.6800 12/20/16 -- (750,085) GMAC LLC Sell 1,750 1.3700 3/20/17 -- (664,843)
F32 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: Continued Intelsat Ltd. Sell $ 175 4.4000% 3/20/09 $ -- $ 1,956 Intelsat Ltd. Sell 430 4.7500 3/20/09 -- 5,914 Intelsat Ltd. Sell 260 5.0000 3/20/09 -- 4,055 iStar Financial, Inc. Sell 2,085 2.9250 12/20/08 -- (70,094) iStar Financial, Inc. Sell 1,215 3.0000 12/20/08 -- (40,405) iStar Financial, Inc. Sell 1,790 5.8500 12/20/08 -- (34,867) iStar Financial, Inc. Sell 560 4.3200 12/20/12 -- (47,811) iStar Financial, Inc. Sell 770 4.5000 12/20/12 -- (61,200) iStar Financial, Inc. Sell 935 4.0000 12/20/12 -- (89,627) iStar Financial, Inc. Sell 1,015 12.0000 3/20/09 -- 37,361 Lehman Brothers Holdings, Inc. Sell 1,380 2.0700 3/20/09 -- 1,500 MBIA Insurance Corp. Sell 280 8.8500 12/20/08 -- (49,050) Owens-Illinois, Inc. Sell 145 2.5000 6/20/13 -- (592) Republic of Peru Buy 1,900 1.7100 12/20/16 -- (39,545) Republic of Peru Sell 405 1.3200 4/20/17 -- 3,550 Republic of Peru Sell 440 1.5000 4/20/17 -- 9,360 Vale Overseas Ltd. Sell 995 1.0500 3/20/17 -- (48,026) Washington Mutual, Inc. Sell 415 4.5000 12/20/08 -- (5,769) - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP: CMBX.NA.AJ.3 Index Sell 1,500 1.4700 12/13/49 184,417 (225,921) CMBX.NA.AJ.4 Index Sell 1,500 0.9600 2/17/51 258,710 (283,479) General Motors Corp. Sell 1,650 4.9500 12/20/16 -- (595,792) Nalco Co. Sell 555 4.2500 9/20/13 -- (75) - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs International: ABX.HE.AA.06-2 Index Sell 240 0.1700 5/25/46 19,774 (190,794) ABX.HE.AA.06-2 Index Sell 970 0.1700 5/25/46 383,127 (771,127) ABX.HE.AAA.06-2 Index Sell 1,000 0.1100 5/25/46 110,607 (304,985) Amkor Technology, Inc. Sell 395 2.6500 9/20/08 -- 391 ArvinMeritor, Inc. Sell 1,025 1.6000 9/20/08 -- (11,646) Beazer Homes USA, Inc. Sell 1,300 2.6500 9/20/08 -- (24,201) Beazer Homes USA, Inc. Sell 1,000 4.8000 9/20/08 -- (13,266) Bolivarian Republic of Venezuela Sell 645 6.3500 5/20/13 -- 20,899 CDX.NA.HY.10 Index Sell 15,800 5.0000 6/20/13 459,736 (923,861) Dole Food Co., Inc. Buy 960 5.0000 6/20/09 (31,200) 24,742 Dole Food Co., Inc. Sell 960 5.0000 6/20/13 127,200 (162,206) Dole Food Co., Inc. Buy 480 5.0000 6/20/09 (15,600) 12,371 Dole Food Co., Inc. Sell 480 5.0000 6/20/13 63,600 (81,103) Dole Food Co., Inc. Sell 485 5.0000 6/20/13 64,263 (81,948) Dole Food Co., Inc. Buy 485 5.0000 6/20/09 (15,763) 12,500 Dole Food Co., Inc. Buy 670 5.0000 6/20/09 (25,125) 17,268 Dole Food Co., Inc. Sell 670 5.0000 6/20/13 88,775 (113,207) First Data Corp. Sell 230 3.0000 9/20/08 -- (165) GMAC LLC Sell 850 1.3900 3/20/17 -- (322,066) GMAC LLC Sell 1,040 1.3900 3/20/17 -- (394,057) GMAC LLC Sell 1,200 1.3700 3/20/17 -- (455,892) GMAC LLC Sell 2,190 1.3900 3/20/17 -- (829,793) iStar Financial, Inc. Sell 2,060 3.9500 12/20/12 -- (200,842) Lennar Corp. Sell 550 2.9000 12/20/08 -- (9,953) Morgan Stanley Sell 1,190 1.5000 9/20/08 -- 2,430
F33 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: Continued Nalco Co. Sell $ 660 3.7000% 9/20/12 $ -- $ 5,374 Rite Aid Corp. Sell 55 8.0600 3/20/09 -- 917 Station Casinos, Inc. Sell 295 5.0000 6/20/13 51,994 (58,337) Univision Communications, Inc. Sell 125 5.0000 6/20/09 13,750 (955) Univision Communications, Inc. Sell 105 5.0000 6/20/09 6,300 (802) Univision Communications, Inc. Sell 510 5.0000 6/20/09 51,000 (3,896) - ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan Chase Bank NA, NY Branch: CDX.NA.HY.10 Index Sell 15,840 5.0000 6/20/13 528,000 (957,675) CDX.NA.HY.8 Index Sell 3,460 2.7500 6/20/12 174,240 (310,218) CDX.NA.HY.9 Index Sell 6,390 3.7500 12/20/12 6,724 (575,838) CMBX.NA.AJ.3 Index Sell 700 1.4700 12/13/49 83,920 (121,452) CMBX.NA.AJ.3 Index Sell 5,800 1.4700 12/13/49 1,282,806 (1,006,317) CMBX.NA.AJ.4 Index Sell 700 0.9600 2/17/51 118,552 (149,256) Dean Foods Co. Sell 915 1.0300 6/20/11 -- (61,530) Dean Foods Co. Sell 915 1.0600 6/20/11 -- (60,807) Dean Foods Co. Sell 500 1.0500 6/20/11 -- (33,360) Dean Foods Co. Sell 975 1.0800 6/20/11 -- (64,281) Dole Food Co., Inc. Sell 1,155 2.3800 9/20/08 -- (12,099) Ford Motor Co. Sell 2,065 6.0000 12/20/16 -- (584,678) General Motors Corp. Sell 2,545 4.7500 12/20/16 -- (933,114) Lehman Brothers Holdings, Inc. Sell 3,710 1.5500 9/20/08 -- (42,617) Merrill Lynch & Co., Inc. Sell 3,710 0.8000 9/20/08 -- 1,666 Morgan Stanley Sell 1,195 0.7500 9/20/08 -- 170 Morgan Stanley Sell 3,265 0.7500 9/20/08 -- 464 Rite Aid Corp. Sell 1,135 1.4000 9/20/08 -- (23,020) Toys "R" Us, Inc. Sell 510 1.9200 9/20/08 -- (7,552) Univision Communications, Inc. Sell 340 5.0000 6/20/09 44,200 (2,597) - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Special Financing, Inc.: ABX.HE.AA.06-2 Index Sell 180 0.1700 5/25/46 44,090 (143,524) ABX.HE.AA.06-2 Index Sell 1,450 0.1700 5/25/46 938,759 (1,156,163) Amkor Technology, Inc. Sell 650 2.5000 9/20/08 -- 397 Aramark Corp. Sell 475 6.0000 3/20/13 -- 36,428 ArvinMeritor, Inc. Sell 1,025 1.1500 9/20/08 -- (12,802) ArvinMeritor, Inc. Sell 1,260 2.2000 9/20/08 -- (2,879) ArvinMeritor, Inc. Sell 840 3.0000 9/20/08 -- (6,595) Beazer Homes USA, Inc. Sell 1,600 5.4000 9/20/08 -- (18,837) Bolivarian Republic of Venezuela Sell 1,290 6.3500 5/20/13 -- 35,234 Cablevision Systems Corp. Sell 150 3.4000 12/20/10 -- (3,225) Cablevision Systems Corp. Sell 590 3.1300 12/20/10 -- (9,020) CDX.NA.HY.10 Index Sell 7,925 5.0000 6/20/13 365,431 (477,369) CDX.NA.HY.8 Index Sell 4,029 2.7500 6/20/12 202,906 (364,606) CDX.NA.HY.8 Index Sell 2,876 2.7500 6/20/12 141,195 (260,241) CDX.NA.HY.9 Index Sell 12,652 3.7500 12/20/12 (41,269) (1,149,830) CenturyTel, Inc. Buy 4,475 1.2300 9/20/13 -- 94,807 Charter Communications Holdings LLC Sell 595 5.0000 9/20/12 89,250 (271,858)
F34 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) FIXED RATE DATE (PAID) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Continued Charter Communications Holdings LLC Buy $ 595 7.2500% 9/20/10 $ -- $ 94,845 Charter Communications Holdings LLC Sell 595 5.0000 9/20/12 95,200 (271,858) Charter Communications Holdings LLC Buy 595 7.6000 9/20/10 -- 91,466 CMBX.NA.AJ.3 Index Sell 2,050 1.4700 12/13/49 289,240 (357,288) CMBX.NA.AJ.4 Index Sell 2,050 0.9600 2/17/51 390,331 (437,490) CSC Holdings, Inc. Sell 470 5.6000 3/20/13 -- 25,258 Dillard's, Inc. Sell 675 2.2500 12/20/08 -- 5,052 Dillard's, Inc. Sell 1,965 2.2500 12/20/08 -- 14,708 Dillard's, Inc. Sell 755 3.2500 9/20/09 -- 182 Dole Food Co., Inc. Buy 535 5.0000 6/20/09 (26,750) 13,789 Dole Food Co., Inc. Sell 535 5.0000 6/20/13 77,575 (90,396) Dole Food Co., Inc. Sell 1,305 3.2000 9/20/08 -- (10,989) Dole Food Co., Inc. Sell 900 5.2500 9/20/08 -- (2,957) First Data Corp. Sell 1,145 2.7500 9/20/08 -- (1,545) First Data Corp. Sell 1,145 3.5000 9/20/08 -- 621 First Data Corp. Sell 689 3.0000 9/20/08 -- (495) First Data Corp. Sell 700 3.0000 9/20/08 -- (503) GMAC LLC Sell 850 1.4000 3/20/17 -- (321,637) GMAC LLC Sell 970 1.4000 3/20/17 -- (367,044) JSC "Gazprom" Buy 2,645 2.1500 2/20/11 -- (70,862) K. Hovnanian Enterprises, Inc. Sell 2,880 4.2200 9/20/08 -- (21,381) Lennar Corp. Sell 2,220 2.9000 12/20/08 -- (40,173) MBIA, Inc. Sell 6,515 1.9500 9/20/08 -- (515,571) Nalco Co. Sell 355 3.4000 9/20/12 -- (863) Nortel Networks Corp. Sell 560 1.8500 9/20/08 -- 170 Owens-Illinois, Inc. Sell 615 2.6400 6/20/13 -- 1,002 Owens-Illinois, Inc. Sell 455 3.4100 3/20/13 -- 23,148 Owens-Illinois, Inc. Sell 1,030 3.4600 3/20/13 -- 54,478 Reliant Energy, Inc. Sell 455 2.5000 9/20/11 -- (6,091) Rite Aid Corp. Sell 500 1.3500 9/20/08 -- (10,203) Rite Aid Corp. Sell 1,255 1.3500 9/20/08 -- (25,610) Rite Aid Corp. Sell 75 1.4500 9/20/08 -- (1,512) Six Flags, Inc. Sell 2,350 5.2200 9/20/08 -- (35,567) Six Flags, Inc. Sell 370 7.0000 9/20/08 -- (3,965) Six Flags, Inc. Sell 520 5.0000 9/20/08 -- (8,154) Smurfit-Stone Container Enterprises, Inc. Sell 535 6.5800 6/20/13 -- (7,700) Smurfit-Stone Container Enterprises, Inc. Sell 180 6.7000 6/20/13 -- (1,834) Smurfit-Stone Container Enterprises, Inc. Sell 240 6.6000 6/20/13 -- (3,286) Station Casinos, Inc. Sell 415 5.0000 6/20/13 73,663 (82,586) The Bear Stearns Cos., Inc. Sell 3,720 1.6000 9/20/08 -- (10,717) Toys "R" Us, Inc. Sell 985 1.8500 9/20/08 -- (14,757) Toys "R" Us, Inc. Sell 1,360 1.9500 9/20/08 -- (20,036) Toys "R" Us, Inc. Sell 690 4.3000 9/20/08 -- (6,112)
F35 | OPPENHEIMER STRATEGIC BOND FUND/ VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Continued Tribune Co. Sell $ 1,135 5.0000% 3/20/10 $ 266,725 $ (296,202) Tribune Co. Sell 595 7.4500 9/20/08 -- (10,401) Tribune Co. Sell 375 7.5500 9/20/08 -- (6,462) Tribune Co. Sell 150 7.5500 9/20/08 -- (2,585) Tribune Co. Sell 215 6.4000 12/20/08 -- (5,048) Tribune Co. Sell 445 6.0000 12/20/08 -- (11,305) Tribune Co. Sell 730 5.0000 3/20/10 189,800 (190,107) Tribune Co. Sell 655 5.0000 3/20/10 196,500 (170,575) Tribune Co. Sell 650 5.0000 3/20/10 204,750 (169,273) Tribune Co. Sell 160 5.0000 3/20/10 52,800 (41,667) Tribune Co. Sell 485 5.0000 3/20/10 160,050 (126,304) Tribune Co. Sell 415 5.0000 3/20/10 145,250 (108,074) Tribune Co. Sell 475 5.0000 3/20/10 161,500 (123,700) Univision Communications, Inc. Sell 1,955 5.0000 9/20/09 58,650 (76,165) Univision Communications, Inc. Sell 460 5.0000 3/20/09 39,100 (16,065) Washington Mutual, Inc. Sell 965 4.4000 12/20/08 -- (13,885) Washington Mutual, Inc. Sell 2,060 5.1500 12/20/08 -- (22,099) Washington Mutual, Inc. Sell 970 7.5000 6/20/09 -- (3,761) - --------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch International: El Paso Corp. Sell 460 2.9000 3/20/18 -- 12,653 El Paso Corp. Sell 1,175 2.8900 3/20/18 -- 31,535 Ford Motor Co. Sell 2,450 5.3000 12/20/12 -- (599,219) General Motors Corp. Sell 1,635 4.0500 12/20/12 -- (501,132) Reliant Energy, Inc. Sell 595 2.0500 9/20/11 -- (15,634) Smurfit-Stone Container Enterprises, Inc. Sell 640 6.8000 6/20/13 -- (4,278) Smurfit-Stone Container Enterprises, Inc. Sell 515 6.7000 6/20/13 -- (5,247) TXU Corp. Sell 935 1.5300 6/20/11 -- (73,779) TXU Corp. Sell 960 1.5800 6/20/11 -- (74,518) TXU Corp. Sell 960 1.5900 6/20/11 -- (74,271) TXU Corp. Sell 1,210 1.6200 6/20/11 -- (92,680) TXU Corp. Sell 1,405 2.0600 6/20/11 -- (91,724) - --------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: ABX.HE.AA.06-2 Index Sell 240 0.1700 5/25/46 19,174 (191,365) ABX.HE.AA.06-2 Sell 480 0.1700 5/25/46 47,998 (382,730) ABX.HE.AAA.06-2 Sell 1,535 0.1100 5/25/46 475,770 (474,630) Aramark Corp. Sell 750 5.9200 3/20/13 -- 55,255 Capmark Financial Group,Inc. Sell 460 7.4000 12/20/12 -- (36,776) Capmark Financial Group,Inc. Sell 415 7.1500 12/20/12 -- (36,242) CDX North America Investment Grade Index Sell 8,240 3.0000 3/23/13 -- (615,983) CDX.NA.HY.10 Index Sell 15,780 5.0000 6/20/13 543,533 (950,920) CDX.NA.HY.9 Index Sell 5,826 3.7500 12/20/12 31,264 (524,087) CDX.NA.IG.10 Index Sell 13,305 1.5500 6/20/13 (278,443) 231,440 CDX.NA.IG.10 Index Sell 7,985 1.5500 6/20/13 (146,662) 43,117 CDX.NA.IG.10 Index Sell 3,990 1.5500 6/20/13 (57,383) 21,545
F36 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
BUY/SELL NOTIONAL PREMIUM SWAP CREDIT AMOUNT PAY/RECEIVE TERMINATION RECEIVED/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATE (PAID) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Capital Services, Inc.: Continued Ford Motor Co. Sell $ 2,065 6.1500% 12/20/16 $ -- $ (574,921) Ford Motor Co. Sell 520 5.9000 12/20/16 -- (148,869) General Motors Corp. Sell 1,650 4.9000 12/20/16 -- (598,085) General Motors Corp. Sell 420 4.6200 12/20/16 -- (155,510) Istanbul Bond Co. SA for Finansbank Sell 5,180 1.3000 3/24/13 -- (303,362) iStar Financial, Inc. Sell 450 4.8600 12/20/12 -- (30,460) Joint Stock Co. "Halyk Bank of Kazakhstan" Sell 3,200 4.7800 3/20/13 -- 2,454 Joint Stock Co. "Halyk Bank of Kazakhstan" Sell 3,200 4.8800 3/20/13 -- 14,186 Lennar Corp. Sell 410 2.9000 12/20/08 -- (7,419) Republic of Peru Sell 2,330 1.0400 6/20/17 -- (44,941) Republic of Turkey Buy 2,590 2.9800 4/20/13 -- (80,497) Residential Capital LLC Sell 3,460 6.1700 9/20/08 -- (60,304) Residential Capital LLC Sell 1,185 6.2500 9/20/08 -- (20,082) Yasar Sell 1,340 8.7500 6/20/10 -- 6,021 Yasar Sell 1,340 8.5000 10/20/09 -- 12,889 - ------------------------------------------------------------------------------------------------------------------------------------ UBS AG: ABX.HE.AAA.06-2 Index Sell 1,035 0.1100 5/25/46 323,384 (320,028) CDX.NA.HY.10 Index Sell 15,850 5.0000 6/20/13 516,226 (953,363) iStar Financial, Inc. Sell 410 4.5600 12/20/12 -- (31,781) Lehman Brothers Holdings, Inc. Sell 1,490 1.5500 9/20/08 -- (17,116) Massey Energy Co. Sell 360 5.0500 9/20/12 -- 31,608 Massey Energy Co. Sell 600 5.1000 9/20/12 -- 53,767 Republic of The Philippines Sell 3,095 1.4500 6/20/17 -- (202,976) Republic of The Philippines Sell 1,870 2.5000 6/20/17 -- 2,137 Univision Communications, Inc. Sell 235 5.0000 6/20/09 21,150 (1,795) ---------------------------- $ 12,636,331 $(41,154,545) ============================
F37 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------------------------------------------------------------------------------------------------------------------- Banco Santander Central Hispano SA: 56,000,000 BRR BZDI 12.2900% 1/4/10 $ (921,375) 4,420,000 BRR BZDI 14.0000 1/3/12 16,055 - ---------------------------------------------------------------------------------------------------------------------------------- Banco Santander, SA, Inc.: MXN-TIIE- 28,100,000 MXN BANXICO 8.6450 5/17/18 (174,222) MXN-TIIE- 31,310,000 MXN BANXICO 8.5700 5/3/18 (203,900) 8,490,000 BRR BZDI 13.5500 1/2/17 (108,441) - ---------------------------------------------------------------------------------------------------------------------------------- Three-Month Citibank NA, New York 73,200,000 TWD 2.3200% TWD-Telerate 6/27/11 2,846 - ---------------------------------------------------------------------------------------------------------------------------------- Credit Suisse International 22,480,000 MXN MXN TIIE 8.3000 12/17/26 (269,437) - ---------------------------------------------------------------------------------------------------------------------------------- INR MIBOR-OIS Deutsche Bank AG 73,400,000 INR 7.1750 Compound 6/27/11 4,647 - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP: 62,900,000 MXN MXN TIIE 8.1400 1/10/18 (28,306) 21,000,000 BRR BZDI 14.5500 1/4/10 521,771 - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs International 18,300,000 CNY 4.0000 CNY-CFXSREPOFIX01 2/16/17 141,396 - ---------------------------------------------------------------------------------------------------------------------------------- J Aron & Co.: 43,800,000 BRR BZDI 10.6700 1/2/12 (2,413,822) 22,300,000 MXN MXN TIIE 9.1500 8/27/26 (113,990) 8,745,000 BRR BZDI 14.1600 1/2/17 2,880 One-Month MXN-TIIE- 9,700,000 MXN BANXICO 9.3300 9/16/26 (32,555) 8,790,000 BRR BZDI 12.9200 1/2/14 (204,405) 4,390,000 BRR BZDI 12.8700 1/2/14 (106,090) 8,750,000 BRR BZDI 12.7100 1/4/10 (76,895) 15,140,000 BRR BZDI 12.6100 1/4/10 (74,836) 19,400,000 BRR BZDI 12.3900 1/2/12 (468,826) 25,560,000 BRR BZDI 14.8900 1/4/10 714,376 6,910,000 BRR BZDI 12.2600 1/2/15 (223,089) 3,160,000 BRR BZDI 12.2900 1/2/15 (99,775) 4,420,000 BRR BZDI 14.0500 1/2/12 18,349 13,000,000 BRR BZDI 14.3000 1/2/17 243 8,550,000 BRR BZDI 13.6700 1/2/17 (109,079) 10,360,000 BRR BZDI 13.1000 1/2/17 (261,071) - ---------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank NA: One-Month MXN-TIIE- 213,340,000 MXN BANXICO 8.3685 4/23/18 (1,679,646) 19,400,000 BRR BZDI 12.3800 1/2/12 (394,244) Six-Month 317,000,000 CZK 4.4000 CZK-PRIBOR 4/4/18 389,920 Three-Month USD 82,000,000 BBA LIBOR 5.5700 5/26/16 5,896,456 Six-Month HUF- 1,142,000,000 HUF BUBOR-Reuters 8.4800 6/6/13 (2,153) 8,750,000 BRR BZDI 13.9100 1/2/12 41,913 MXN-TIIE- 23,230,000 MXN BANXICO 8.5700 5/3/18 (161,482) MXN-TIIE- 27,055,000 MXN BANXICO 9.3200 6/1/18 (41,688)
F38 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: 6,915,000 BRR BZDI 14.3100% 1/2/17 $ 259 7,200,000 BRR BZDI 13.8500 1/2/17 1,011 - --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc. 24,550,000 BRR BZDI 12.9000 1/2/14 (558,765) - --------------------------------------------------------------------------------------------------------------------------------- Six-Month Merrill Lynch 27,440,000 SGD 3.2534 SGD-SOR-Telerate 4/3/18 1,338,107 - --------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Capital MXN-TIIE- Services, Inc. 36,370,000 MXN BANXICO 8.5700 5/11/18 (234,169) - --------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: 14,260,000 EUR 4.7130 Six-Month EURIBOR 8/22/17 (223,664) Six-Month 168,200,000 NOK 4.9850 NOK-NIBOR-NIBR 1/18/11 73,050 Three-Month 67,000,000 SEK SEK-STIBOR 4.2600 1/18/11 (206,959) Six-Month 7,110,000 EUR EUR-EURIBOR 3.9960 1/18/11 ( 88,044) Six-Month 11,500,000 CHF CHF-LIBOR-BBA 2.6600 1/18/11 (222,154) 5,590,000 BRR BZDI 13.9300 1/2/17 879 - --------------------------------------------------------------------------------------------------------------------------------- UBS AG 9,100,000 BRR BZDI 14.3400 1/2/17 284 Six-Month - --------------------------------------------------------------------------------------------------------------------------------- Westpac Banking Corp. 21,890,000 AUD BBR-BBSW 7.3510 6/4/18 (130,883) ---------------- $ (669,523) ================
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: AUD Australian Dollar BRR Brazilian Real CHF Swiss Franc CNY Chinese Renminbi (Yuan) CZK Czech Koruna EUR Euro HUF Hungarian Forint INR Indian Rupee MXN Mexican Nuevo Peso NOK Norwegian Krone SEK Swedish Krona SGD Singapore Dollar TWD New Taiwan Dollar Index abbreviations are as follows: BANXICO Banco de Mexico BBA British Bankers' Association BBA LIBOR British Bankers' Association London-Interbank Offered Rate BBR BBSW Bank Bill Rate-Reuters BUBOR Budapest Interbank Offered Rate BZDI Brazil Interbank Deposit Rate CNY-CFXSREPOFIX01 Chinese Renminbi 7 Days Repurchase Fixing Rates EURIBOR Euro Interbank Offered Rate LIBOR London-Interbank Offered Rate MXN-TIIE Mexican Nuevo Peso-Interbank Equilibrium Interest Rate MIBOR-OIS Mid Market Interest Rate for French Franc/Austrian Schilling and India Swap Composites-Overnight Indexed Swap NIBOR-NIBR Norwegian Interbank Offered Rate-Den Norsk Bank PRIBOR Prague Interbank Offering Rate SGD-SOR Singapore Swap Offer Rate STIBOR Stockholm Interbank Offered Rate F39 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
NOTIONAL PAID BY RECEIVED BY SWAP COUNTERPARTY AMOUNT THE FUND THE FUND TERMINATION DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Citibank NA: If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS $ 15,700,000 AAA Index AAA Index 2/1/09 $ (324,905) If positive, the Total If negative, the Total Return Return of the Lehman of the Lehman Brothers Brothers U.S. CMBS U.S. CMBS AAA 8.5+ 9,600,000 AAA 8.5+ Index Index minus 15 basis points 8/1/08 (378,689) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA Index minus AAA Index plus 7,800,000 15 basis points 15 basis points 2/1/09 (160,475) - ------------------------------------------------------------------------------------------------------------------------------------ Citibank NA, New York: One-Month JPY-LIBOR-BBA plus 40 basis points and if negative, the absolute value of the Total If positive, the Total Return of a custom Return of a custom 1,317,617,622 JPY basket of securities basket of securities 4/14/09 (806,205) One-Month GBP-LIBOR-BBA plus 35 basis points and if negative, the absolute value of the Total If positive, the Total Return of a custom Return of a custom 6,358,908 GBP basket of securities basket of securities 5/8/09 (1,429,888) - ------------------------------------------------------------------------------------------------------------------------------------ Deutsche Bank AG: Six-Month USD 1,620,000 BBA LIBOR 5.46% times UDI 5/13/15 529,272 930,000 Six-Month USD LIBOR 5.25% times UDI 6/23/15 265,167 - ------------------------------------------------------------------------------------------------------------------------------------ One-Month USD BBA LIBOR plus 20 basis points and if negative, the absolute value of the Total If positive, the Total Return of a custom Return of a custom Deutsche Bank AG, London 10,388,643 equity basket equity basket 9/15/08 (767,084) - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs Group, Inc. (The): If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 8,860,000 AAA 8.5+ Index plus 50 basis points 8/1/08 (340,839) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 9,000,000 AAA 8.5+ Index AAA 8.5+ Index 3/1/09 (352,715)
F40 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
NOTIONAL PAID BY RECEIVED BY SWAP COUNTERPARTY AMOUNT THE FUND THE FUND TERMINATION DATE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs If negative, the Total Group, Inc. (The) If positive, the Total Return of the Lehman Continued Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index $ 500,000 AAA 8.5+ Index plus 50 basis points 3/1/09 $ (17,739) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 23,430,000 AAA 8.5+ Index plus 250 basis points 3/1/09 (483,357) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 2,750,000 AAA 8.5+ Index plus 200 basis points 3/1/09 (66,940) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 13,820,000 AAA 8.5+ Index minus 50 basis points 12/1/08 (574,942) Six-Month 920,000 USD-BBA-LIBOR 5.10% times UDI 1/14/15 306,185 920,000 Six-Month BBA LIBOR 5.08% times UDI 1/20/15 321,848 - ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs International: If negative, the absolute value of If positive, the the Total Return Total Return of the BOVESPA of the BOVESPA 6,878,962 BRR 08/08 Index 08/08 Index 8/14/08 (241,555) One-Month USD- LIBOR-BBA plus 30 basis points and if negative, the absolute value of If positive, the the Total Return of a Total Return of a 41,436,670 custom equitybasket custom equity basket 6/8/09 (1,138,387) One-Month USD BBA LIBOR and if negative, If positive, the the absolute value of Total Return of the the MSCI Daily Total MSCI Daily Total Return New Belgium Return New Belgium 605,922 USD Market Index USD Market Index 10/8/08 (110,605) One-Month USD BBA LIBOR and if negative, If positive, the the absolute value of Total Return of the the MSCI Daily Total MSCI Daily Total Return New Belgium Return New Belgium 2,714,359 USD Market Index USD Market Index 10/8/08 (426,620) One-Month USD BBA LIBOR and if negative, If positive, the the absolute value of Total Return of the the MSCI Daily Total MSCI Daily Total Return New Belgium Return New Belgium 592,754 USD Market Index USD Market Index 10/8/08 (98,316)
F41 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
NOTIONAL PAID BY RECEIVED BY SWAP COUNTERPARTY AMOUNT THE FUND THE FUND TERMINATION DATE VALUE - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs One-Month USD BBA International: Continued LIBOR and if negative, If positive, the the absolute value of Total Return of the the MSCI Daily Total MSCI Daily Total Return New Belgium Return New Belgium $ 459,776 USD Market Index USD Market Index 10/8/08 $ (68,470) - ---------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 10,000,000 AAA 8.5+ Index minus 30 basis points 8/1/08 (396,969) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 16,500,000 AAA 8.5+ Index plus 35 basis points 8/1/08 (647,252) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 3,760,000 AAA 8.5+ Index AAA 8.5+ Index 3/1/09 (148,445) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 2,750,000 AAA 8.5+ Index plus 200 basis points 3/1/09 (104,598) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 5,600,000 AAA 8.5+ Index AAA 8.5+ Index 5/1/09 (221,089) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 11,200,000 AAA 8.5+ Index minus 20 basis points 5/1/09 (443,796) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 7,480,000 AAA 8.5+ Index minus 35 basis points 12/1/08 (297,202) - ---------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Capital Services, Inc.: The Constant Maturity Option Price 15,380,000 5.30% divided by 10,000 8/13/17 (121,581) The Constant Maturity Option Price 54,700,000 4.66 divided by 10,000 6/11/17 1,771,123 - ---------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley: If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 10,910,000 AAA 8.5+ Index plus 225 basis points 8/1/08 (382,683)
F42 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - --------------------------------------------------------------------------------
NOTIONAL PAID BY RECEIVED BY TERMINATION SWAP COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley: Continued If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index $ 1,200,000 AAA 8.5+ Index plus 150 basis points 8/1/08 $ (43,589) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 4,900,000 AAA 8.5+ Index AAA 8.5+ Index 8/1/08 (190,222) If positive, the Total If negative, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS 28,300,000 AAA Index AAA Index 3/1/09 (494,309) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 5,110,000 AAA 8.5+ Index plus 250 basis points 3/1/09 (82,933) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 16,140,000 AAA 8.5+ Index minus 50 basis points 12/1/08 (629,334) If negative, the Total If positive, the Total Return of the Lehman Return of the Lehman Brothers U.S. CMBS Brothers U.S. CMBS AAA 8.5+ Index 4,120,000 AAA 8.5+ Index minus 65 basis points 12/1/08 (163,718) One-Month EUR BBA LIBOR plus 25 basis points and if negative, the absolute value of the Total Return If positive, the Total of a custom Return of a custom 5,425,900 EUR basket of securities basket of securities 3/6/09 (840,737) - ----------------------------------------------------------------------------------------------------------------------------------- Three-Month 7.75% from debt obligations Morgan Stanley USD BBA of JSC Rushydro and OJSC Capital Services, Inc. 271,430,000 RUR LIBOR Saratovskaya HPP 12/26/13 959,732 - ----------------------------------------------------------------------------------------------------------------------------------- One-Month EUR BBA LIBOR plus 30 basis points and if negative, the absolute value of the Total Return If positive, the Total Morgan Stanley of a custom Return of a custom International 4,956,100 EUR basket of securities basket of securities 10/7/08 (682,476) --------------- $ (9,525,337) ===============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: BRR Brazilian Real EUR Euro GBP British Pound Sterling JPY Japanese Yen RUR Russian Ruble F43 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS Continued - -------------------------------------------------------------------------------- Abbreviations are as follows: BBA British Bankers' Association BBA LIBOR British Bankers' Association London-Interbank Offered Rate BOVESPA Bovespa Index that trades on the Sao Paulo Stock Exchange CMBS Commercial Mortgage Backed Securities LIBOR London-Interbank Offered Rate MSCI Morgan Stanley Capital International UDI Unidad de Inversion (Unit of Investment) - -------------------------------------------------------------------------------- CURRENCY SWAP CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT (000S) THE FUND THE FUND DATE VALUE - -------------------------------------------------------------------------------------------------------- Credit Suisse International: Three Month 3,170,000 TRY USD BBA LIBOR 16.75% 2/26/12 $ 215,922 Three Month 1,255,000 TRY USD BBA LIBOR 17.25 2/7/12 115,198 Three Month 1,890,000 TRY USD BBA LIBOR 17.30 2/9/12 170,965 - -------------------------------------------------------------------------------------------------------- Three-Month Merrill Lynch International 1,960,000 TRY BBA LIBOR 17.10 2/6/12 207,757 ------------- $ 709,842 =============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currency: TRY New Turkish Lira Abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F44 OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- ASSETS - ------------------------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $3,563,009,987) $ 3,544,713,134 Affiliated companies (cost $768,877,833) 763,653,479 ------------------ 4,308,366,613 - ------------------------------------------------------------------------------------------------------------------------------- Cash 2,846,438 - ------------------------------------------------------------------------------------------------------------------------------- Cash--foreign currencies (cost $1,002,142) 1,037,217 - ------------------------------------------------------------------------------------------------------------------------------- Unrealized appreciation on foreign currency exchange contracts 22,235,607 - ------------------------------------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $4,252,566) 12,669,056 - ------------------------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold (including $3,486,308 sold on a when-issued or delayed delivery basis) 95,364,110 Interest, dividends and principal paydowns 49,454,126 Shares of beneficial interest sold 9,194,575 Closed foreign currency contracts 3,606,102 Other 1,482,368 ------------------ Total assets 4,506,256,212 - ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES - ------------------------------------------------------------------------------------------------------------------------------- Short positions, at value (proceeds of $3,486,308)--see accompanying statement of investments 3,522,483 - ------------------------------------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 18,894,100 - ------------------------------------------------------------------------------------------------------------------------------- Unrealized depreciation on foreign currency exchange contracts 11,295,276 - ------------------------------------------------------------------------------------------------------------------------------- Swaps, at value (net premiums received $8,383,765) 63,308,619 - ------------------------------------------------------------------------------------------------------------------------------- Unrealized depreciation on unfunded loan commitments 80,786 - ------------------------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $95,586,233 purchased on a when-issued or delayed delivery basis) 163,754,259 Closed foreign currency contracts 10,383,846 Shares of beneficial interest redeemed 2,369,554 Distribution and service plan fees 2,048,349 Futures margins 227,218 Trustees' compensation 22,116 Transfer and shareholder servicing agent fees 1,737 Other 67,842 ------------------ Total liabilities 275,976,185 ================== - ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 4,230,280,027 ================== - ------------------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 780,970 - ------------------------------------------------------------------------------------------------------------------------------- Additional paid-in capital 4,093,982,984 - ------------------------------------------------------------------------------------------------------------------------------- Accumulated net investment income 100,768,920 - ------------------------------------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions 79,494,837 - ------------------------------------------------------------------------------------------------------------------------------- Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies (44,747,684) ------------------ NET ASSETS $ 4,230,280,027 ==================
F45 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------------------------------------------------------- Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $798,647,649 and 149,361,915 shares of beneficial interest outstanding) $ 5.35 - ------------------------------------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $3,431,632,378 and 631,607,864 shares of beneficial interest outstanding) $ 5.43
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F46 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2008 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- ALLOCATION OF INCOME AND EXPENSES FROM MASTER FUNDS 1 - ------------------------------------------------------------------------------------------------------------------------------- Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund: Interest $ 8,364 Dividends 588 Expenses 2 (1,455) ------------------ Net investment income from Oppenheimer Master Event-Linked Bond Fund, LLC 7,497 - ------------------------------------------------------------------------------------------------------------------------------- Net investment income allocated from Oppenheimer Master Loan Fund, LLC: Interest 5,191,714 Dividends 327,818 Expenses 3 (322,973) ------------------ Net investment income from Oppenheimer Master Loan Fund, LLC 5,196,559 - ------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------------------------------------------------------- Interest (net of foreign withholding taxes of $255,986) 102,063,972 - ------------------------------------------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $8,406) 446,266 Affiliated companies 9,548,681 - ------------------------------------------------------------------------------------------------------------------------------- Fee income 499,850 - ------------------------------------------------------------------------------------------------------------------------------- Portfolio lending fees 154,682 ------------------ Total investment income 112,713,451 - ------------------------------------------------------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------------------------------------------------------- Management fees 10,749,792 - ------------------------------------------------------------------------------------------------------------------------------- Distribution and service plan fees - Service shares 3,942,954 - ------------------------------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,987 Service shares 4,954 - ------------------------------------------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 5,158 Service shares 20,964 - ------------------------------------------------------------------------------------------------------------------------------- Custodian fees and expenses 89,758 - ------------------------------------------------------------------------------------------------------------------------------- Trustees' compensation 28,045 - ------------------------------------------------------------------------------------------------------------------------------- Administration service fees 750 - ------------------------------------------------------------------------------------------------------------------------------- Other 98,770 ------------------ Total expenses 14,946,132 Less reduction to custodian expenses (2,127) Less waivers and reimbursements of expenses (473,592) ------------------ Net expenses 14,470,413 - ------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 103,447,094
1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 1 of accompanying Notes. 2. Net of expense waivers and/or reimbursements of $25. 3. Net of expense waivers and/or reimbursements of $8,083. F47 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENT OF OPERATIONS Unaudited/Continued - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on: Investments from unaffiliated companies (including premiums on options exercised) $ 10,950,593 Closing and expiration of option contracts written 3,241,937 Closing and expiration of futures contracts 13,320,908 Foreign currency transactions 44,125,737 Short positions (707,494) Swap contracts 11,009,125 Allocated from Oppenheimer Master Event-Linked Bond Fund, LLC (247) Allocated from Oppenheimer Master Loan Fund, LLC (1,402,494) ------------------ Net realized gain 80,538,065 - ------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (113,048,720) Translation of assets and liabilities denominated in foreign currencies 29,005,014 Futures contracts 8,394,299 Option contracts written (303,250) Short positions 403,890 Swap contracts (33,416,543) Unfunded loan commitments (80,786) Allocated from Oppenheimer Master Event-Linked Bond Fund, LLC (9,334) Allocated from Oppenheimer Master Loan Fund, LLC (4,014,383) ------------------ Net change in unrealized depreciation (113,069,813) - ------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 70,915,346 ==================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F48 | OPPENHEIMER STRATEGIC BOND FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- OPERATIONS - --------------------------------------------------------------------------------------------------------------------------- Net investment income $ 103,447,094 $ 140,904,592 - --------------------------------------------------------------------------------------------------------------------------- Net realized gain 80,538,065 93,909,628 - --------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) (113,069,813) 19,532,851 -------------------------------------------- Net increase in net assets resulting from operations 70,915,346 254,347,071 - --------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - --------------------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (36,989,595) (22,674,018) Service shares (140,242,199) (53,839,537) -------------------------------------------- (177,231,794) (76,513,555) - --------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gain: Non-Service shares (8,547,484) -- Service shares (33,595,865) -- -------------------------------------------- (42,143,349) -- - --------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - --------------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from beneficial interest transactions: Non-Service shares 94,167,662 88,509,398 Service shares 673,944,753 1,341,464,972 -------------------------------------------- 768,112,415 1,429,974,370 - --------------------------------------------------------------------------------------------------------------------------- NET ASSETS - --------------------------------------------------------------------------------------------------------------------------- Total increase 619,652,618 1,607,807,886 - --------------------------------------------------------------------------------------------------------------------------- Beginning of period 3,610,627,409 2,002,819,523 -------------------------------------------- End of period (including accumulated net investment income of $100,768,920 and $174,553,620, respectively) $ 4,230,280,027 $ 3,610,627,409 ============================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F49 | OPPENHEIMER STRATEGIC BOND FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 5.56 $ 5.26 $ 5.11 $ 5.21 $ 5.05 $ 4.57 Income (loss) from investment operations: Net investment income .15 1 .28 1 .26 1 .25 1 .22 1 .22 Net realized and unrealized gain (loss) (.03) .21 .11 (.12) .20 .56 ---------------------------------------------------------------------------------- Total from investment operations .12 .49 .37 .13 .42 .78 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.27) (.19) (.22) (.23) (.26) (.30) Distributions from net realized gain (.06) -- -- -- -- -- ---------------------------------------------------------------------------------- Total dividends and distributions to shareholders (.33) (.19) (.22) (.23) (.26) (.30) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 5.35 $ 5.56 $ 5.26 $ 5.11 $ 5.21 $ 5.05 ================================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 2.22% 9.69% 7.49% 2.67% 8.67% 18.07% - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 798,648 $ 734,611 $ 606,632 $538,141 $ 614,915 $ 571,445 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 778,744 $ 664,668 $ 564,248 $ 550,201 $ 584,878 $ 472,213 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 5.45% 5.34% 5.05% 4.91% 4.50% 5.61% Total expenses 0.58% 4 0.59% 4 0.64% 4 0.71% 0.74% 0.75% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.56% 0.57% 0.63% 0.71% 0.74% 0.75% - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 48% 5 76% 5 93% 5 98% 5 88% 5 117%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated funds, excluding investments in Master Funds, were as follows: Six Months Ended June 30, 2008 0.59% Year Ended December 31, 2007 0.61% Year Ended December 31, 2006 0.64%
5. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 216,625,616 $ 175,568,696 Year Ended December 31, 2007 1,061,009,472 1,120,098,096 Year Ended December 31, 2006 742,785,501 749,719,239 Year Ended December 31, 2005 890,029,144 873,786,459 Year Ended December 31, 2004 959,649,113 973488,511
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F50 | OPPENHEIMER STRATEGIC BOND FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 5.65 $ 5.34 $ 5.19 $ 5.29 $ 5.13 $ 4.67 Income (loss) from investment operations: Net investment income .14 1 .28 1 .25 1 .21 1 .19 1 .27 Net realized and unrealized gain (loss) (.04) .22 .11 (.08) .22 .49 ---------------------------------------------------------------------------------------- Total from investment operations .10 .50 .36 .13 .41 .76 - ------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.26) (.19) (.21) (.23) (.25) (.30) Distributions from net realized gain (.06) -- -- -- -- -- ---------------------------------------------------------------------------------------- Total dividends and distributions to shareholders (.32) (.19) (.21) (.23) (.25) (.30) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 5.43 $ 5.65 $ 5.34 $ 5.19 $ 5.29 $ 5.13 ======================================================================================== - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 1.83% 9.55% 7.23% 2.48% 8.43% 17.16% - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 3,431,632 $ 2,876,016 $1,396,188 $ 658,107 $ 242,705 $ 79,782 - ------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 3,180,082 $ 2,075,028 $1,016,582 $ 408,515 $ 150,040 $ 34,744 Ratios to average net assets: 3 - ------------------------------------------------------------------------------------------------------------------------------ Net investment income 5.21% 5.08% 4.83% 4.20% 3.82% 4.57% Total expenses 0.82% 4 0.84% 4 0.89% 4 0.96% 0.99% 1.02% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.80% 0.82% 0.88% 0.96% 0.99% 1.02% - ------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 48% 5 76% 5 93% 5 98% 5 88% 5 117%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated funds, excluding investments in Master Funds, were as follows: Six Months Ended June 30, 2008 0.83% Year Ended December 31, 2007 0.86% Year Ended December 31, 2006 0.89%
5. The portfolio turnover rate excludes purchases and sales of To Be Announced (TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------- Six Months Ended June 30, 2008 $ 216,625,616 $ 175,568,696 Year Ended December 31, 2007 1,061,009,472 1,120,098,096 Year Ended December 31, 2006 742,785,501 749,719,239 Year Ended December 31, 2005 890,029,144 873,786,459 Year Ended December 31, 2004 959,649,113 973,488,511
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F51 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Strategic Bond Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek a high level of current income principally derived from interest on debt securities. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F52 | OPPENHEIMER STRATEGIC BOND FUND/VA In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- STRUCTURED SECURITIES. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note's market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures. - -------------------------------------------------------------------------------- CATASTROPHE/EVENT-LINKED BONDS. The Fund may invest in "event-linked" bonds. Event-linked bonds, which are sometimes referred to as "catastrophe" bonds, are fixed income securities for which the return of principal and payment of interest is contingent on the non-occurrence of a specific trigger event, such as a hurricane, earthquake, or other occurrence that leads to physical or economic loss. If the trigger event occurs prior to maturity, the Fund may lose all or a portion of its principal in addition to interest otherwise due from the security. Event-linked bonds may expose the Fund to certain other risks, including issuer default, adverse regulatory or jurisdictional interpretations, liquidity risk and adverse tax consequences. The Fund records the net change in market value of event-linked bonds on the Statement of Operations as a change in unrealized appreciation or depreciation on investments. The Fund records a realized gain or loss on the Statement of Operations upon the sale or maturity of such securities. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. F53 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued As of June 30, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS ------------------------------------------------------ Purchased securities $ 95,586,233 Sold securities 3,486,308
The Fund may enter into "forward roll" transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; counterparty credit risk. To assure its future payment of the purchase price, the Fund maintains internally designated assets with a market value equal to or greater than the payment obligation under the roll. - -------------------------------------------------------------------------------- SECURITIES SOLD SHORT. The Fund may short sell when-issued securities for future settlement. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss for the value of the open short position. The Fund records a realized gain or loss when the short position is closed out. Short positions are reported on a schedule following the Statement of Investments. - -------------------------------------------------------------------------------- CREDIT RISK. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of June 30, 2008, securities with an aggregate market value of $1,458,188, representing 0.03% of the Fund's net assets, were in default. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. F54 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- INVESTMENTS IN OPPENHEIMER MASTER FUNDS. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC (the "master funds"). Each master fund has its own investment risks, and those risks can affect the value of the Fund's investments and therefore the value of the Fund's shares. To the extent that the Fund invests more of its assets in one master fund than in another, the Fund will have greater exposure to the risks of that master fund. The investment objective of Oppenheimer Master Loan Fund, LLC is to seek as high a level of current income and preservation of capital as is consistent with investing primarily in loans and other debt securities. The investment objective of Oppenheimer Master Event-Linked Bond Fund, LLC is to seek a high level of current income principally derived from interest on debt securities. The Fund's investments in the master funds are included in the Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each master fund according to its allocated pro-rata share, based on its relative proportion of total outstanding master fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the master funds. As a shareholder, the Fund is subject to its proportional share of master funds's expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in the master funds. - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the collateral is required to be sufficient to cover payments of interest and principal. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. F55 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued During the fiscal year ended December 31, 2007, the Fund utilized $13,349,869 of capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October passive foreign investment company losses of $19,681 and straddle losses of $195,725. As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of zero. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will utilize $215,406 of capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 4,333,636,434 Federal tax cost of other investments 23,410,603 --------------- Total federal tax cost $ 4,357,047,037 =============== Gross unrealized appreciation $ 118,302,015 Gross unrealized depreciation (175,435,332) --------------- Net unrealized depreciation $ (57,133,317) ===============
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. F56 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------ NON-SERVICE SHARES Sold 23,030,523 $ 126,178,489 27,845,638 $ 149,207,278 Dividends and/or distributions reinvested 8,575,721 45,537,079 4,394,189 22,674,018 Redeemed (14,254,973) (77,547,906) (15,524,784) (83,371,898) ------------------------------------------------------------------- Net increase 17,351,271 $ 94,167,662 16,715,043 $ 88,509,398 =================================================================== - ------------------------------------------------------------------------------------------------------------------ SERVICE SHARES Sold 108,023,279 $ 601,804,250 244,861,091 $ 1,327,141,100 Dividends and/or distributions reinvested 32,192,234 173,838,064 10,255,150 53,839,537 Redeemed (17,956,486) (101,697,561) (7,224,289) (39,515,665) ------------------------------------------------------------------- Net increase 122,259,027 $ 673,944,753 247,891,952 $ 1,341,464,972 ===================================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES ----------------------------------------------------------------- Investment securities $ 1,376,614,386 $ 1,013,400,116 U.S. government and government agency obligations 238,184,870 279,695,029 To Be Announced (TBA) mortgage-related securities 216,625,616 175,568,696
F57 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE -------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Next $200 million 0.60 Over $1 billion 0.50
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,956 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investments in IMMF and the master funds. During the six months ended June 30, 2008, the Manager waived $473,592 for management fees. - -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. F58 | OPPENHEIMER STRATEGIC BOND FUND/VA Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. - -------------------------------------------------------------------------------- 6. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. - -------------------------------------------------------------------------------- 7. OPTION ACTIVITY The Fund may buy and sell put and call options, or write put and covered call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations. Securities designated to cover outstanding call or put options are noted in the Statement of Investments where applicable. Options written are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk that there may be an illiquid market where the Fund is unable to close the contract. F59 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 7. OPTION ACTIVITY Continued Written option activity for the six months ended June 30, 2008 was as follows:
CALL OPTIONS PUT OPTIONS ------------------------------- -------------------------------- NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS - ----------------------------------------------------------------------------------------------- Options outstanding as of December 31, 2007 2,878,960,000 $ 384,268 6,960,000 $ 52,511 Options written 11,868,025,000 2,819,503 12,023,355,000 3,019,910 Options closed or expired (8,481,835,000) (1,727,443) (6,693,725,000) (1,712,756) Options exercised (6,265,150,000) (1,476,328) (5,336,590,000) (1,359,665) ------------------------------------------------------------------- Options outstanding as of June 30, 2008 -- $ -- -- $ -- ===================================================================
- -------------------------------------------------------------------------------- 8. SWAP CONTRACTS The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Risks of entering into swap contracts include credit, market and liquidity risk. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination. - -------------------------------------------------------------------------------- CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps on a single security, or a basket of securities. In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations. Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities). F60 | OPPENHEIMER STRATEGIC BOND FUND/VA - -------------------------------------------------------------------------------- INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between counterparties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received. - -------------------------------------------------------------------------------- TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between counterparties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments. - -------------------------------------------------------------------------------- CURRENCY SWAPS. A currency swap is an agreement between counterparties to exchange different currencies equivalent to the notional value at contract inception and reverse the exchange of the same notional values of those currencies at contract termination. The contract may also include periodic exchanges of cash flows based on a specified index or interest rate. Currency swap agreements include exchange rate risk. Due to the exchange of currency at contract termination, changes in currency exchange rates may result in the Fund paying an amount greater than the amount received. There is a risk, based on movements of interest rates or indexes that the periodic payments made by the Fund will be greater than the payments received. - -------------------------------------------------------------------------------- SWAPTION TRANSACTIONS. The Fund may enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into an interest rate swap at a preset rate within a specified period of time. The purchaser pays a premium to the swaption writer who bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap. Swaptions are marked to market daily using primarily quotations from counterparties and brokers. Written swap-tions are reported on a schedule following the Statement of Investments. Written swaptions are reported as a liability in the Statement of Assets and Liabilities. The difference between the premium received or paid, and market value of the swaption, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When a swaption is exercised, the cost of the swap is adjusted by the amount of premium paid or received. Upon the expiration or closing of an unexercised swaption contract, a gain or loss is reported in the Statement of Operations for the amount of the premium paid or received. Swaption contracts written by the Fund do not give rise to counterparty credit risk as they obligate the Fund, not its counterparty, to perform. The Fund generally will incur a greater risk when it writes a swaption than when it purchases a swaption. When the Fund purchases a swaption it risks losing only the amount of the premium they have paid if the option expires unexercised. When the Fund writes a swaption it will become obligated, upon exercise of the option, according to the terms of the underlying agreement. - -------------------------------------------------------------------------------- 9.ILLIQUID OR RESTRICTED SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid or restricted. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid and restricted securities. Certain restricted securities, eligible for resale to qualified institutional purchasers, may not be subject to that limitation. Securities that are illiquid or restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments. F61 | OPPENHEIMER STRATEGIC BOND FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 10. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of June 30, 2008, the Fund had on loan securities valued at $18,470,077. Collateral of $18,894,100 was received for the loans, of which all was received in cash and subsequently invested in approved instruments. - -------------------------------------------------------------------------------- 11. UNFUNDED PURCHASE COMMITMENTS Pursuant to the terms of certain indenture agreements, the Fund has unfunded purchase commitments of $21,116,470 at June 30, 2008. The Fund generally will maintain with its custodian, liquid investments having an aggregate value at least equal to the amount of unfunded loan commitments. The following commitments are subject to funding based on the borrower's discretion. The Fund is obligated to fund these commitments at the time of the request by the borrower. These commitments have been excluded from the Statement of Investments. As of June 30, 2008, the Fund had unfunded purchase commitments as follows:
COMMITMENT TERMINATION UNFUNDED DATE AMOUNT ----------------------------------------------------------- Deutsche Bank AG, Opic Reforma Credit Linked Nts. 10/23/13 $ 9,116,470
COMMITMENT INTEREST TERMINATION UNFUNDED UNREALIZED RATE DATE AMOUNT DEPRECIATION - ----------------------------------------------------------------------------------------------------------------- Deutsche Bank AG; An unfunded commitment that Oppenheimer receives .50% quarterly; and will pay out, upon request, up to 30,490,000 USD to a Peruvian Trust through Deutsche Bank's Global Note Program. Upon funding requests, the unfunded portion decreases and new structured securities will be created and held by the fund to maintain a consistent exposure level. 0.50% 9/20/10 $ 12,000,000 $ 80,786
- -------------------------------------------------------------------------------- 12. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standard Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F62 | OPPENHEIMER STRATEGIC BOND FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER STRATEGIC BOND FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Global Securities Management Fund/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 5 | OPPENHEIMER GLOBAL SECURITIES FUND/VA FUND EXPENSES Continued - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ------------------------------------------------------------------------------------------- Non-Service Shares $1,000.00 $ 866.20 $3.02 - ------------------------------------------------------------------------------------------- Service Shares 1,000.00 864.90 4.18 - ------------------------------------------------------------------------------------------- Class 3 Shares 1,000.00 865.90 3.02 - ------------------------------------------------------------------------------------------- Class 4 Shares 1,000.00 864.90 4.23 HYPOTHTICAL (5% return before expenses) - ------------------------------------------------------------------------------------------- Non-Service Shares 1,000.00 1,021.63 3.27 - ------------------------------------------------------------------------------------------- Service Shares 1,000.00 1,020.39 4.53 - ------------------------------------------------------------------------------------------- Class 3 Shares 1,000.00 1,021.63 3.27 - ------------------------------------------------------------------------------------------- Class 4 Shares 1,000.00 1,020.34 4.58
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------- Non-Service Shares 0.65% - ------------------------------------- Service Shares 0.90 - ------------------------------------- Class 3 Shares 0.65 - ------------------------------------- Class 4 Shares 0.91
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 6 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- COMMON STOCKS--97.4% - -------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--17.8% - -------------------------------------------------------------------------------- AUTOMOBILES--2.4% Bayerische Motoren Werke (BMW) AG 683,302 $ 32,866,574 - -------------------------------------------------------------------------------- Porsche Automobil Holding 158,890 24,443,653 - -------------------------------------------------------------------------------- Toyota Motor Corp. 484,700 22,799,248 --------------- 80,109,475 - -------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--2.6% Aristocrat Leisure Ltd. 430,600 2,650,151 - -------------------------------------------------------------------------------- Carnival Corp. 1,121,100 36,951,456 - -------------------------------------------------------------------------------- International Game Technology 437,500 10,928,750 - -------------------------------------------------------------------------------- McDonald's Corp. 601,700 33,827,574 - -------------------------------------------------------------------------------- Shuffle Master, Inc. 1 296,600 1,465,204 --------------- 85,823,135 - -------------------------------------------------------------------------------- HOUSEHOLD DURABLES--1.7% Sony Corp. 1,300,800 55,889,153 - -------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.2% Sega Sammy Holdings, Inc. 524,500 4,573,970 - -------------------------------------------------------------------------------- MEDIA--4.0% Dish TV India Ltd. 1 2,415,722 1,687,215 - -------------------------------------------------------------------------------- Grupo Televisa SA, Sponsored GDR 1,686,896 39,844,484 - -------------------------------------------------------------------------------- Sirius Satellite Radio, Inc. 1 10,120,810 19,431,955 - -------------------------------------------------------------------------------- Walt Disney Co. (The) 1,313,400 40,978,080 - -------------------------------------------------------------------------------- Wire & Wireless India Ltd. 1 2,278,650 1,138,663 - -------------------------------------------------------------------------------- WPP Group plc 1,456,690 14,050,436 - -------------------------------------------------------------------------------- Zee Entertainment Enterprises Ltd. 2,789,310 12,965,997 --------------- 130,096,830 - -------------------------------------------------------------------------------- SPECIALTY RETAIL--3.9% Hennes & Mauritz AB, Cl. B 1,174,500 63,393,197 - -------------------------------------------------------------------------------- Industria de Diseno Textil SA 662,700 30,529,650 - -------------------------------------------------------------------------------- Tiffany & Co. 874,100 35,619,575 --------------- 129,542,422 - -------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--3.0% Bulgari SpA 1,713,618 17,247,214 - -------------------------------------------------------------------------------- Burberry Group plc 1,393,338 12,509,866 - -------------------------------------------------------------------------------- LVMH Moet Hennessey Louis Vuitton 517,580 53,943,228 - -------------------------------------------------------------------------------- Tod's SpA 282,297 15,507,356 --------------- 99,207,664 - -------------------------------------------------------------------------------- CONSUMER STAPLES--8.5% - -------------------------------------------------------------------------------- BEVERAGES--2.4% Diageo plc 1,014,425 18,670,027
SHARES VALUE - -------------------------------------------------------------------------------- BEVERAGES Continued Dr. Pepper Snapple Group, Inc. 1 405,530 $ 8,508,019 - -------------------------------------------------------------------------------- Fomento Economico Mexicano SA de CV, UBD 8,049,300 36,636,331 - -------------------------------------------------------------------------------- Grupo Modelo SA de CV, Series C 3,312,500 16,859,443 --------------- 80,673,820 - -------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--2.8% Seven & I Holdings Co. Ltd. 466,053 13,298,871 - -------------------------------------------------------------------------------- Tesco plc 4,336,125 31,895,846 - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 809,000 45,465,800 --------------- 90,660,517 - -------------------------------------------------------------------------------- FOOD PRODUCTS--0.8% Cadbury plc 2,162,781 27,138,557 - -------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--2.5% Colgate-Palmolive Co. 355,900 24,592,690 - -------------------------------------------------------------------------------- Hindustan Unilever Ltd. 4,383,800 21,106,430 - -------------------------------------------------------------------------------- Reckitt Benckiser Group plc 718,388 36,416,641 --------------- 82,115,761 - -------------------------------------------------------------------------------- ENERGY--6.6% - -------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--3.2% Technip SA 531,180 48,838,298 - -------------------------------------------------------------------------------- Transocean, Inc. 367,972 56,075,253 --------------- 104,913,551 - -------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--3.4% BP plc, ADR 472,469 32,869,668 - -------------------------------------------------------------------------------- Husky Energy, Inc. 1,114,530 53,360,159 - -------------------------------------------------------------------------------- Total SA 309,860 26,442,063 --------------- 112,671,890 - -------------------------------------------------------------------------------- FINANCIALS--12.6% - -------------------------------------------------------------------------------- CAPITAL MARKETS--1.8% 3i Group plc 922,940 15,079,319 - -------------------------------------------------------------------------------- Credit Suisse Group AG 996,431 45,211,945 --------------- 60,291,264 - -------------------------------------------------------------------------------- COMMERCIAL BANKS--4.2% HSBC Holdings plc 2,371,087 36,764,810 - -------------------------------------------------------------------------------- ICICI Bank Ltd., Sponsored ADR 1 257,250 7,398,510 - -------------------------------------------------------------------------------- Royal Bank of Scotland Group plc (The) 8,374,280 35,716,800 - -------------------------------------------------------------------------------- Societe Generale, Cl. A 273,640 23,557,433 - -------------------------------------------------------------------------------- Sumitomo Mitsui Financial Group, Inc. 4,425 33,296,370 --------------- 136,733,923
F1 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - -------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--1.4% Citigroup, Inc. 1,076,000 $ 18,033,760 - -------------------------------------------------------------------------------- Investor AB, B Shares 1,408,354 29,558,510 ---------------- 47,592,270 - -------------------------------------------------------------------------------- INSURANCE--5.2% ACE Ltd. 338,271 18,635,349 - -------------------------------------------------------------------------------- AFLAC, Inc. 510,800 32,078,240 - -------------------------------------------------------------------------------- Allianz SE 254,818 44,858,142 - -------------------------------------------------------------------------------- American International Group, Inc. 1,180,450 31,234,707 - -------------------------------------------------------------------------------- Prudential plc 2,373,857 25,201,987 - -------------------------------------------------------------------------------- Sony Financial Holdings, Inc. 2,239 9,003,654 - -------------------------------------------------------------------------------- XL Capital Ltd., Cl. A 458,800 9,432,928 ---------------- 170,445,007 - -------------------------------------------------------------------------------- HEALTH CARE--6.8% - -------------------------------------------------------------------------------- BIOTECHNOLOGY--1.5% Acadia Pharmaceuticals, Inc. 1 302,500 1,116,225 - -------------------------------------------------------------------------------- Basilea Pharmaceutica AG 1 22,441 3,655,408 - -------------------------------------------------------------------------------- Gilead Sciences, Inc. 1 487,020 25,787,709 - -------------------------------------------------------------------------------- InterMune, Inc. 1 273,600 3,589,632 - -------------------------------------------------------------------------------- NicOx SA 1 212,570 3,021,770 - -------------------------------------------------------------------------------- Regeneron Pharmaceuticals, Inc. 1 178,102 2,571,793 - -------------------------------------------------------------------------------- Seattle Genetics, Inc. 1 524,228 4,434,969 - -------------------------------------------------------------------------------- Theravance, Inc. 1 451,800 5,362,866 ---------------- 49,540,372 - -------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--0.5% Smith & Nephew plc 1,518,547 16,677,875 - -------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--0.6% Aetna, Inc. 297,400 12,053,622 - -------------------------------------------------------------------------------- WellPoint, Inc. 1 179,135 8,537,574 ---------------- 20,591,196 - -------------------------------------------------------------------------------- PHARMACEUTICALS--4.2% Chugai Pharmaceutical Co. Ltd. 574,900 9,198,617 - -------------------------------------------------------------------------------- Roche Holding AG 368,947 66,204,160 - -------------------------------------------------------------------------------- Sanofi-Aventis SA 451,375 30,028,051 - -------------------------------------------------------------------------------- Shionogi & Co. Ltd. 1,631,000 32,179,168 ---------------- 137,609,996 - -------------------------------------------------------------------------------- INDUSTRIALS--13.4% - -------------------------------------------------------------------------------- AEROSPACE & DEFENSE--3.9% Boeing Co. 219,100 14,399,252 - -------------------------------------------------------------------------------- Empresa Brasileira de Aeronautica SA, ADR 797,883 21,143,900 - -------------------------------------------------------------------------------- European Aeronautic Defense & Space Co. 1,382,350 25,945,025 - -------------------------------------------------------------------------------- Lockheed Martin Corp. 225,200 22,218,232
SHARES VALUE - -------------------------------------------------------------------------------- AEROSPACE & DEFENSE Continued Northrop Grumman Corp. 281,100 $ 18,805,590 - -------------------------------------------------------------------------------- Raytheon Co. 433,900 24,419,892 ---------------- 126,931,891 - -------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--1.0% TNT NV 736,800 25,026,762 - -------------------------------------------------------------------------------- United Parcel Service, Inc., Cl. B 135,700 8,341,479 ---------------- 33,368,241 - -------------------------------------------------------------------------------- BUILDING PRODUCTS--1.0% Assa Abloy AB, Cl. B 2,344,385 33,964,183 - -------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.8% Experian Group Ltd. 1,091,029 8,063,068 - -------------------------------------------------------------------------------- Secom Co. Ltd. 358,600 17,425,964 ---------------- 25,489,032 - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--1.7% Emerson Electric Co. 807,200 39,916,040 - -------------------------------------------------------------------------------- Mitsubishi Electric Corp. 1,508,000 16,260,865 ---------------- 56,176,905 - -------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--4.6% 3M Co. 502,000 34,934,180 - -------------------------------------------------------------------------------- Koninklijke (Royal) Philips Electronics NV 1,266,800 42,777,730 - -------------------------------------------------------------------------------- Siemens AG 676,917 74,732,217 ---------------- 152,444,127 - -------------------------------------------------------------------------------- MACHINERY--0.4% Fanuc Ltd. 116,000 11,328,530 - -------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--26.3% - -------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--6.5% Corning, Inc. 1,773,500 40,879,175 - -------------------------------------------------------------------------------- Juniper Networks, Inc. 1 2,213,500 49,095,430 - -------------------------------------------------------------------------------- Tandberg ASA 1,096,550 17,977,288 - -------------------------------------------------------------------------------- Telefonaktiebolaget LM Ericsson, B Shares 10,102,580 104,251,620 ---------------- 212,203,513 - -------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--2.9% Hoya Corp. 929,900 21,499,313 - -------------------------------------------------------------------------------- Keyence Corp. 88,140 20,992,236 - -------------------------------------------------------------------------------- Kyocera Corp. 181,200 17,064,557 - -------------------------------------------------------------------------------- Murata Manufacturing Co. Ltd. 548,600 26,021,831 - -------------------------------------------------------------------------------- Nidec Corp. 153,200 10,200,348 ---------------- 95,778,285 - -------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.7% eBay, Inc. 1 2,007,800 54,873,174
F2 | OPPENHEIMER GLOBAL SECURITIES FUND/VA
SHARES VALUE - -------------------------------------------------------------------------------- IT SERVICES--2.7% Automatic Data Processing, Inc. 1,074,300 $ 45,013,170 - -------------------------------------------------------------------------------- Infosys Technologies Ltd. 1,088,426 43,936,741 ---------------- 88,949,911 - -------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.4% Altera Corp. 1,294,400 26,794,080 - -------------------------------------------------------------------------------- Cree, Inc. 1 752,400 17,162,244 - -------------------------------------------------------------------------------- Linear Technology Corp. 519,296 16,913,471 - -------------------------------------------------------------------------------- Maxim Integrated Products, Inc. 1,193,965 25,252,360 - -------------------------------------------------------------------------------- MediaTek, Inc. 2,790,335 32,175,312 - -------------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd. 1 12,449,176 26,659,521 - -------------------------------------------------------------------------------- Taiwan Semiconductor Manufacturing Co. Ltd., ADR 1 1,023,812 11,169,789 - -------------------------------------------------------------------------------- Xilinx, Inc. 864,900 21,838,725 ---------------- 177,965,502 - -------------------------------------------------------------------------------- SOFTWARE--7.1% Adobe Systems, Inc. 1 1,198,263 47,199,580 - -------------------------------------------------------------------------------- Enix Corp. 583,500 17,254,697 - -------------------------------------------------------------------------------- Intuit, Inc. 1 1,487,300 41,004,861 - -------------------------------------------------------------------------------- Microsoft Corp. 1,957,100 53,839,821 - -------------------------------------------------------------------------------- Nintendo Co. Ltd. 42,100 23,749,023 - -------------------------------------------------------------------------------- SAP AG 993,765 51,852,146 ---------------- 234,900,128 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--4.0% - -------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--4.0% KDDI Corp. 5,947 36,739,954 - -------------------------------------------------------------------------------- SK Telecom Co. Ltd., ADR 1,328,660 27,596,268 - -------------------------------------------------------------------------------- Vodafone Group plc 23,395,112 68,933,170 ---------------- 133,269,392 - -------------------------------------------------------------------------------- UTILITIES--1.4% - -------------------------------------------------------------------------------- ELECTRIC UTILITIES--1.4% Fortum Oyj 896,100 45,514,674 ---------------- Total Common Stocks (Cost $2,695,604,374) 3,206,056,136 - -------------------------------------------------------------------------------- PREFERRED STOCKS--0.9% - -------------------------------------------------------------------------------- Bayerische Motoren Werke (BMW) AG, Preference 207,040 8,156,566 - -------------------------------------------------------------------------------- Companhia de Bebidas das Americas ADR, Preference 333,415 21,121,840 ---------------- Total Preferred Stocks (Cost $14,805,444) 29,278,406
PRINCIPAL AMOUNT VALUE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CONVERTIBLE CORPORATE BONDS AND NOTES--0.1% - -------------------------------------------------------------------------------- Theravance, Inc., 3% Cv. Sub. Nts., 1/15/15 (Cost $2,882,000) $2,882,000 $ 2,067,835
SHARES - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INVESTMENT COMPANY--1.3% - -------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 2,3 (Cost $43,401,025) 43,401,025 43,401,025 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $2,756,692,843) 99.7% 3,280,803,402 - -------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 0.3 11,210,911 ----------------------------- NET ASSETS 100.0% $3,292,014,313 =============================
FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - ----------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 68,796,760 284,787,275 310,183,010 43,401,025
DIVIDEND VALUE INCOME - ----------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $43,401,025 $ 1,024,443
3. Rate shown is the 7-day yield as of June 30, 2008. F3 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* ---------------------------------------------------------------------------------- Level 1--Quoted Prices $2,402,745,171 $ 13,315 Level 2--Other Significant Observable Inputs 878,058,231 -- Level 3--Significant Unobservable Inputs -- -- ---------------------------------- Total $3,280,803,402 $ 13,315 ==================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. - -------------------------------------------------------------------------------- FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF JUNE 30, 2008 ARE AS FOLLOWS: - --------------------------------------------------------------------------------
CONTRACT AMOUNT EXPIRATION UNREALIZED UNREALIZED CONTRACT DESCRIPTION BUY/SELL (000s) DATE VALUE APPRECIATION DEPRECIATION - -------------------------------------------------------------------------------------------------------------------------- British Pound Sterling (GBP) Sell 1,049 GBP 7/1/08 $ 2,088,732 $ -- $ 3,957 British Pound Sterling (GBP) Buy 526 GBP 7/1/08 1,048,232 2,094 -- Japanese Yen (JPY) Buy 276,826 JPY 7/1/08 2,607,018 16,468 -- Norwegian Krone (NOK) Buy 702 NOK 7/1/08 137,862 -- 1,290 ----------------------------- Total unrealized appreciation and depreciation $ 18,562 $ 5,247 =============================
F4 | OPPENHEIMER GLOBAL SECURITIES FUND/VA DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT - ------------------------------------------------------------------------------- United States $ 1,050,939,816 32.0% Japan 398,776,369 12.2 United Kingdom 371,925,002 11.3 Germany 236,909,298 7.2 Sweden 231,167,510 7.1 France 211,775,868 6.5 Switzerland 115,071,513 3.5 Mexico 93,340,258 2.8 India 88,233,556 2.7 Cayman Islands 84,143,530 2.6 Taiwan 70,004,622 2.1 The Netherlands 67,804,492 2.1 Canada 53,360,159 1.6 Finland 45,514,674 1.4 Brazil 42,265,740 1.3 Italy 32,754,570 1.0 Spain 30,529,650 0.9 Korea, Republic of South 27,596,268 0.8 Norway 17,977,288 0.6 Jersey, Channel Islands 8,063,068 0.2 Australia 2,650,151 0.1 -------------------------------- Total $ 3,280,803,402 100.0% ================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F5 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ ASSETS - ------------------------------------------------------------------------------------------ Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $2,713,291,818) $ 3,237,402,377 Affiliated companies (cost $43,401,025) 43,401,025 ----------------- 3,280,803,402 - ------------------------------------------------------------------------------------------ Cash 3,417,583 - ------------------------------------------------------------------------------------------ Cash--foreign currencies (cost $1,474,249) 1,577,335 - ------------------------------------------------------------------------------------------ Unrealized appreciation on foreign currency exchange contracts 18,562 - ------------------------------------------------------------------------------------------ Receivables and other assets: Shares of beneficial interest sold 6,421,258 Interest and dividends 5,737,866 Investments sold 2,091,989 Other 383,414 ----------------- Total assets 3,300,451,409 - ------------------------------------------------------------------------------------------ LIABILITIES - ------------------------------------------------------------------------------------------ Unrealized depreciation on foreign currency exchange contracts 5,247 - ------------------------------------------------------------------------------------------ Payables and other liabilities: Investments purchased 4,383,044 Shares of beneficial interest redeemed 2,800,783 Distribution and service plan fees 818,554 Shareholder communications 241,801 Trustees' compensation 53,028 Transfer and shareholder servicing agent fees 3,526 Other 131,113 ----------------- Total liabilities 8,437,096 - ------------------------------------------------------------------------------------------ NET ASSETS $ 3,292,014,313 ================= - ------------------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------------------ Par value of shares of beneficial interest $ 112,781 - ------------------------------------------------------------------------------------------ Additional paid-in capital 2,661,457,574 - ------------------------------------------------------------------------------------------ Accumulated net investment income 29,732,942 - ------------------------------------------------------------------------------------------ Accumulated net realized gain on investments and foreign currency transactions 76,246,005 - ------------------------------------------------------------------------------------------ Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 524,465,011 ----------------- NET ASSETS $ 3,292,014,313 ================= - ------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------------------ Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $1,782,954,985 and 60,924,173 shares of beneficial interest outstanding) $ 29.27 - ------------------------------------------------------------------------------------------ Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $1,122,617,680 and 38,687,835 shares of beneficial interest outstanding) $ 29.02 - ------------------------------------------------------------------------------------------ Class 3 Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $286,218,438 and 9,718,447 shares of beneficial interest outstanding) $ 29.45 - ------------------------------------------------------------------------------------------ Class 4 Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $100,223,210 and 3,450,855 shares of beneficial interest outstanding) $ 29.04
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F6 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2008 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $2,480,450) $ 53,602,585 Affiliated companies 1,024,443 - ------------------------------------------------------------------------------------------- Portfolio lending fees 2,121,619 - ------------------------------------------------------------------------------------------- Interest 48,854 ----------------- Total investment income 56,797,501 - ------------------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------------------- Management fees 11,060,413 - ------------------------------------------------------------------------------------------- Distribution and service plan fees: Service shares 1,481,570 Class 4 shares 135,592 - ------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,836 Service shares 4,897 Class 3 shares 4,971 Class 4 shares 4,988 - ------------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 53,717 Service shares 32,629 Class 3 shares 8,762 Class 4 shares 2,998 - ------------------------------------------------------------------------------------------- Custodian fees and expenses 193,942 - ------------------------------------------------------------------------------------------- Trustees' compensation 33,593 - ------------------------------------------------------------------------------------------- Administration service fees 750 - ------------------------------------------------------------------------------------------- Other 61,659 ----------------- Total expenses 13,085,317 Less reduction to custodian expenses (1,915) Less waivers and reimbursements of expenses (29,281) ----------------- Net expenses 13,054,121 - ------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 43,743,380 - ------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ------------------------------------------------------------------------------------------- Net realized gain on: Investments from unaffiliated companies 71,626,176 Foreign currency transactions 14,264,129 ----------------- Net realized gain 85,890,305 - ------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (733,076,482) Translation of assets and liabilities denominated in foreign currencies 77,840,373 ----------------- Net change in unrealized appreciation (655,236,109) - ------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (525,602,424) =================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F7 | OPPENHEIMER GLOBAL SECURITIES FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- OPERATIONS - ------------------------------------------------------------------------------------------------------------- Net investment income $ 43,743,380 $ 44,674,647 - ------------------------------------------------------------------------------------------------------------- Net realized gain 85,890,305 240,399,758 - ------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (655,236,109) (48,606,722) ------------------------------------ Net increase (decrease) in net assets resulting from operations (525,602,424) 236,467,683 - ------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (26,708,494) (30,881,671) Service shares (13,401,398) (12,491,101) Class 3 shares (4,326,225) (5,291,097) Class 4 shares (1,190,079) (1,330,580) ------------------------------------ (45,626,196) (49,994,449) - ------------------------------------------------------------------------------------------------------------- Distributions from net realized gain: Non-Service shares (117,354,093) (112,256,514) Service shares (71,861,924) (52,238,025) Class 3 shares (19,045,871) (19,263,594) Class 4 shares (6,614,741) (5,788,329) ------------------------------------ (214,876,629) (189,546,462) - ------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares 19,849,841 (104,231,544) Service shares 82,852,670 321,202,694 Class 3 shares (5,163,141) (34,573,579) Class 4 shares 790,529 9,459,510 ------------------------------------ 98,329,899 191,857,081 - ------------------------------------------------------------------------------------------------------------- NET ASSETS - ------------------------------------------------------------------------------------------------------------- Total increase (decrease) (687,775,350) 188,783,853 - ------------------------------------------------------------------------------------------------------------- Beginning of period 3,979,789,663 3,791,005,810 ------------------------------------ End of period (including accumulated net investment income of $29,732,942 and $31,615,758, respectively) $ 3,292,014,313 $ 3,979,789,663 ====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F8 | OPPENHEIMER GLOBAL SECURITIES FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 36.60 $ 36.79 $ 33.38 $ 29.51 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .41 1 .45 1 .43 1 .32 1 Net realized and unrealized gain (loss) (5.26) 1.69 5.20 3.85 --------------------------------------------------------------------------- Total from investment operations (4.85) 2.14 5.63 4.17 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.46) (.50) (.36) (.30) Distributions from net realized gain (2.02) (1.83) (1.86) -- --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.48) (2.33) (2.22) (.30) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.27 $ 36.60 $ 36.79 $ 33.38 =========================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (13.38)% 6.32% 17.69% 14.31% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 1,782,955 $2,193,638 $2,297,315 $2,124,413 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 1,946,842 $2,302,726 $2,189,511 $2,123,523 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 2.55% 1.21% 1.27% 1.08% Total expenses 0.65% 4,5,6 0.65% 4,5,6 0.66% 4,5,6 0.67% 5 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 8% 18% 21% 35% YEAR ENDED DECEMBER 31, NON-SERVICE SHARES 2004 2003 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 25.08 $ 17.70 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .26 1 .19 Net realized and unrealized gain (loss) 4.49 7.34 ------------------------------------- Total from investment operations 4.75 7.53 - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.32) (.15) Distributions from net realized gain -- -- ------------------------------------- Total dividends and/or distributions to shareholders (.32) (.15) - -------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.51 $ 25.08 ===================================== - -------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 19.16% 43.02% - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 2,518,867 $2,280,752 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 2,451,188 $1,751,226 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.01% 0.99% Total expenses 0.66% 5 0.67% 5 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 30% 34%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.65% Year Ended December 31, 2007 0.65% Year Ended December 31, 2006 0.66%
5. Reduction to custodian expenses less than 0.005%. 6. Waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F9 | OPPENHEIMER GLOBAL SECURITIES FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 36.27 $ 36.49 $ 33.16 $ 29.33 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .37 1 .33 1 .33 1 .24 1 Net realized and unrealized gain (loss) (5.22) 1.72 5.16 3.84 --------------------------------------------------------------------------- Total from investment operations (4.85) 2.05 5.49 4.08 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.38) (.44) (.30) (.25) Distributions from net realized gain (2.02) (1.83) (1.86) -- --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.40) (2.27) (2.16) (.25) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.02 $ 36.27 $ 36.49 $ 33.16 =========================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 (13.51)% 6.08% 17.36% 14.06% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 1,122,618 $1,300,989 $ 983,558 $ 557,284 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 1,190,801 $1,180,656 $ 750,499 $ 413,849 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 2.33% 0.91% 0.98% 0.79% Total expenses 0.90% 4,5,6 0.89% 4,5,6 0.91% 4,5,6 0.92% 5 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 8% 18% 21% 35% YEAR ENDED DECEMBER 31, SERVICE SHARES 2004 2003 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 24.96 $ 17.61 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .20 1 .12 Net realized and unrealized gain (loss) 4.46 7.36 ------------------------------------- Total from investment operations 4.66 7.48 - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.29) (.13) Distributions from net realized gain -- -- ------------------------------------- Total dividends and/or distributions to shareholders (.29) (.13) - -------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.33 $ 24.96 ===================================== - -------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 18.88% 42.86% - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 346,403 $ 168,739 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 247,490 $ 91,800 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 0.77% 0.68% Total expenses 0.91% 5 0.93% 5 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 30% 34%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.90% Year Ended December 31, 2007 0.89% Year Ended December 31, 2006 0.91%
5. Reduction to custodian expenses less than 0.005%. 6. Waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F10 | OPPENHEIMER GLOBAL SECURITIES FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, CLASS 3 SHARES (UNAUDITED) 2007 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 36.82 $ 36.99 $ 33.55 $ 29.65 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .41 2 .45 2 .43 2 .32 2 Net realized and unrealized gain (loss) (5.30) 1.71 5.23 3.88 --------------------------------------------------------------------------- Total from investment operations (4.89) 2.16 5.66 4.20 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.46) (.50) (.36) (.30) Distributions from net realized gain (2.02) (1.83) (1.86) -- --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.48) (2.33) (2.22) (.30) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.45 $ 36.82 $ 36.99 $ 33.55 =========================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (13.41)% 6.34% 17.69% 14.34% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 286,218 $ 361,621 $ 395,901 $ 346,064 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 316,717 $ 391,270 $ 369,406 $ 296,252 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 2.54% 1.22% 1.26% 1.06% Total expenses 0.65% 5,6,7 0.65% 5,6,7 0.66% 5,6,7 0.67% 6 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 8% 18% 21% 35% YEAR ENDED DECEMBER 31, CLASS 3 SHARES 2004 2003 1 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 25.19 $ 17.55 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .26 2 .07 Net realized and unrealized gain (loss) 4.52 7.57 ------------------------------------- Total from investment operations 4.78 7.64 - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.32) -- Distributions from net realized gain -- -- ------------------------------------- Total dividends and/or distributions to shareholders (.32) -- - -------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.65 $ 25.19 ===================================== - -------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 19.19% 43.53% - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 265,044 $ 147,576 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 199,388 $ 80,579 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 1.00% 0.73% Total expenses 0.66% 6 0.68% 6 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 30% 34%
1. For the period from May 1, 2003 (inception of offering) to December 31, 2003. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.65% Year Ended December 31, 2007 0.65% Year Ended December 31, 2006 0.66%
6. Reduction to custodian expenses less than 0.005%. 7. Waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F11 | OPPENHEIMER GLOBAL SECURITIES FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, CLASS 4 SHARES (UNAUDITED) 2007 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 36.28 $ 36.49 $ 33.15 $ 29.35 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income 2 .36 .34 .34 .24 Net realized and unrealized gain (loss) (5.22) 1.70 5.16 3.84 --------------------------------------------------------------------------- Total from investment operations (4.86) 2.04 5.50 4.08 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.36) (.42) (.30) (.28) Distributions from net realized gain (2.02) (1.83) (1.86) -- --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.38) (2.25) (2.16) (.28) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.04 $ 36.28 $ 36.49 $ 33.15 =========================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (13.51)% 6.06% 17.40% 14.05% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 100,223 $ 123,542 $ 114,232 $ 90,604 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 108,942 $ 122,385 $ 100,973 $ 61,380 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 2.29% 0.93% 1.00% 0.79% Total expenses 0.91% 5,6,7 0.90% 5,6,7 0.91% 5,6,7 0.93% 6 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 8% 18% 21% 35% YEAR ENDED DECEMBER 31, CLASS 4 SHARES 2004 1 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 25.21 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income 2 .09 Net realized and unrealized gain (loss) 4.05 ---------------------------- Total from investment operations 4.14 - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- Distributions from net realized gain -- ---------------------------- Total dividends and/or distributions to shareholders -- - -------------------------------------------------------------------------------------------- Net asset value, end of period $ 29.35 ============================ - -------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 16.42% - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 37,384 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 19,774 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 0.53% Total expenses 0.94% 6 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 30%
1. For the period from May 3, 2004 (inception of offering) to December 31, 2004. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.91% Year Ended December 31, 2007 0.90% Year Ended December 31, 2006 0.91%
6. Reduction to custodian expenses less than 0.005%. 7. Waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F12 | OPPENHEIMER GLOBAL SECURITIES FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Global Securities Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek long-term capital appreciation by investing a substantial portion of its assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers Non-Service, Service, Class 3 and Class 4 shares. All classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares being designated as Service shares and Class 4 shares are subject to a distribution and service plan. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The Fund assesses a 1% fee on the proceeds of Class 3 and Class 4 shares that are redeemed (either by selling or exchanging to another Oppenheimer fund or other investment option offered through your variable life insurance or variable annuity contract) within 60 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. F13 | OPPENHEIMER GLOBAL SECURITIES FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENTS IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. F14 | OPPENHEIMER GLOBAL SECURITIES FUND/VA - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October passive foreign investment company losses of $2,192,980. As of June 30, 2008, the Fund did not have any estimated capital loss carryforward for federal income tax purposes. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will utilize $2,192,980 of capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 2,766,646,965 Federal tax cost of other investments 1,474,249 ------------------ Total federal tax cost $ 2,768,121,214 ================== Gross unrealized appreciation $ 777,843,039 Gross unrealized depreciation (263,401,914) ------------------ Net unrealized appreciation $ 514,441,125 ==================
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets F15 | OPPENHEIMER GLOBAL SECURITIES FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ---------------------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 4,481,096 $ 140,118,415 6,411,129 $ 236,447,298 Dividends and/or distributions reinvested 4,840,813 144,062,587 4,207,471 143,138,185 Redeemed (8,328,375) (264,331,161) (13,131,133) (483,817,027) ----------------------------------------------------------------- Net increase (decrease) 993,534 $ 19,849,841 (2,512,533) $ (104,231,544) =================================================================
F16 | OPPENHEIMER GLOBAL SECURITIES FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 2,746,734 $ 87,317,799 10,073,670 $ 368,640,666 Dividends and/or distributions reinvested 2,887,346 85,263,322 1,916,196 64,729,126 Redeemed (2,819,986) (89,728,451) (3,068,408) (112,167,098) -------------------------------------------------------------------- Net increase 2,814,094 $ 82,852,670 8,921,458 $ 321,202,694 ==================================================================== - ------------------------------------------------------------------------------------------------------------------------- CLASS 3 SHARES Sold 133,626 $ 4,405,140 404,332 $ 14,980,587 Dividends and/or distributions reinvested 780,370 23,372,096 717,554 24,554,691 Redeemed (1,017,536) (32,940,377) 1 (2,002,496) (74,108,857) 2 -------------------------------------------------------------------- Net decrease (103,540) $ (5,163,141) (880,610) $ (34,573,579) ==================================================================== - ------------------------------------------------------------------------------------------------------------------------- CLASS 4 SHARES Sold 56,860 $ 1,820,839 392,793 $ 14,359,772 Dividends and/or distributions reinvested 264,033 7,804,820 210,681 7,118,909 Redeemed (275,160) (8,835,130) 1 (328,721) (12,019,171) 2 -------------------------------------------------------------------- Net increase 45,733 $ 790,529 274,753 $ 9,459,510 ====================================================================
1. Net of redemption fees of $2,882 and $3,805 for Class 3 and Class 4, respectively. 2. Net of redemption fees of $11,158 and $4,865 for Class 3 and Class 4, respectively. - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES -------------------------------------------------------------------- Investment securities $ 298,070,843 $ 385,527,156
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ----------------------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $19,745 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. F17 | OPPENHEIMER GLOBAL SECURITIES FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES AND CLASS 4 SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares and Class 4 shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares and Class 4 shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares and Class 4 shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares and Class 4 shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares and Class 4 shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $29,281 for IMMF management fees. - -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. - -------------------------------------------------------------------------------- 6. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment F18 | OPPENHEIMER GLOBAL SECURITIES FUND/VA received from the borrower and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of June 30, 2008, the Fund had no securities on loan. - -------------------------------------------------------------------------------- 7. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F19 | OPPENHEIMER GLOBAL SECURITIES FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. F20 | OPPENHEIMER GLOBAL SECURITIES FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER GLOBAL SECURITIES FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Money Fund/VA Commentaries A Series of Oppenheimer Variable Account Funds and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur ongoing costs, including management fees; service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio, and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ------------------------------------------------------------------------------------------- $ 1,000.00 $ 1,015.30 $ 2.41 HYPOTHETICAL (5% return before expenses) - ------------------------------------------------------------------------------------------- 1,000.00 1,022.48 2.42
Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). The annualized expense ratio, based on the 6-month period ended June 30, 2008 is as follows: EXPENSE RATIO - ------------- 0.48% 4 | OPPENHEIMER MONEY FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--12.2% - ----------------------------------------------------------------------------------- Abbey National Treasury Services plc, Stamford, CT, 3.06%, 12/12/08 $ 4,500,000 $ 4,500,000 - ----------------------------------------------------------------------------------- Bank of Nova Scotia, 3.20%, 12/18/08 2,500,000 2,500,000 - ----------------------------------------------------------------------------------- Barclays Bank plc, New York, 2.73%, 7/1/08 2,000,000 2,000,000 - ----------------------------------------------------------------------------------- BNP Paribas, New York, 2.70%, 7/16/08 3,000,000 3,000,000 - ----------------------------------------------------------------------------------- Dexia Credit Local, New York, 2.64%, 8/18/08 3,500,000 3,500,000 - ----------------------------------------------------------------------------------- Governor & Co. of the Bank of Ireland, Stamford, CT, 2.70%, 8/15/08 2,000,000 2,000,000 - ----------------------------------------------------------------------------------- Skandinaviska Enskilda Banken, New York, 2.50%, 7/22/08 4,000,000 4,000,000 - ----------------------------------------------------------------------------------- Toronto Dominion Bank, New York, 3.13%, 1/30/09 2,500,000 2,500,000 -------------- Total Certificates of Deposit (Cost $24,000,000) 24,000,000 - ----------------------------------------------------------------------------------- DIRECT BANK OBLIGATIONS--30.1% - ----------------------------------------------------------------------------------- Bank of Scotland plc: 2.65%, 8/5/08 3,500,000 3,490,710 2.65%, 8/7/08 4,300,000 4,288,094 - ----------------------------------------------------------------------------------- Dexia Delaware LLC: 2.60%, 7/9/08 1,000,000 999,393 2.65%, 8/6/08 5,000,000 4,986,750 - ----------------------------------------------------------------------------------- DnB NOR Bank ASA: 2.55%, 7/10/08 1,700,000 1,698,916 2.74%, 7/3/08 3,000,000 2,999,545 2.75%, 7/8/08 2,000,000 1,998,931 2.80%, 11/3/08 2,600,000 2,574,722 - ----------------------------------------------------------------------------------- Governor & Co. of the Bank of Ireland: 2.65%, 7/14/08 1 3,000,000 2,996,804 2.75%, 7/7/08 1 2,000,000 1,999,083 2.97%, 7/17/08 1 2,000,000 1,997,378 - ----------------------------------------------------------------------------------- HSBC USA, Inc.: 2.67%, 10/8/08 5,000,000 4,963,288 2.81%, 12/2/08 3,000,000 2,963,938 3.06%, 12/19/08 1,450,000 1,428,924 - ----------------------------------------------------------------------------------- Santander Central Hispano Finance (Delaware), Inc.: 2.77%, 11/21/08 2,500,000 2,472,492 3.12%, 12/30/08 2,000,000 1,968,453 - ----------------------------------------------------------------------------------- Societe Generale North America, Inc., 2.60%, 7/3/08 700,000 699,901 - ----------------------------------------------------------------------------------- Stadshypotek Delaware, Inc., 2.60%, 8/12/08 1 3,200,000 3,190,293 - ----------------------------------------------------------------------------------- Swedbank AB, 2.80%, 8/14/08 2,900,000 2,890,076 - ----------------------------------------------------------------------------------- Swedbank Mortgage AB, 2.80%, 8/1/08 3,500,000 3,491,561 - ----------------------------------------------------------------------------------- U.S. Bank NA, 2.70%, 9/8/08 5,000,000 5,000,000 -------------- Total Direct Bank Obligations (Cost$59,099,252) 59,099,252 - ----------------------------------------------------------------------------------- SHORT-TERM NOTES--57.2% - ----------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--19.3% FCAR Owner Trust I: 2.95%, 7/10/08 2,500,000 2,498,156 3%, 7/14/08 3,000,000 2,996,750 - ----------------------------------------------------------------------------------- FCAR Owner Trust II, 3.01%, 7/23/08 1,700,000 1,696,873 - ----------------------------------------------------------------------------------- Gemini Securitization Corp.: 2.63%, 7/8/08 1 3,100,000 3,098,415 2.95%, 7/28/08 1 4,300,000 4,290,486 - ----------------------------------------------------------------------------------- GOVCO, Inc., 2.86%, 7/21/08 1 4,500,000 4,492,850 - ----------------------------------------------------------------------------------- Legacy Capital LLC: 2.90%, 8/8/08 3,000,000 2,990,817 2.92%, 8/11/08 4,000,000 3,986,698 3%, 7/25/08 1,000,000 998,000 3.10%, 9/9/08 1,400,000 1,391,561 - ----------------------------------------------------------------------------------- Lexington Parker Capital Co. LLC: 3%, 8/8/08 1 2,500,000 2,492,083 3.10%, 7/31/08 1 2,500,000 2,493,542 3.20%, 7/24/08 1 2,400,000 2,395,093 3.20%, 7/25/08 1 2,000,000 1,995,733 -------------- 37,817,057 - ----------------------------------------------------------------------------------- CAPITAL MARKETS--6.1% Banc of America Securities LLC, 2.65%, 7/1/08 2 5,000,000 5,000,000 - ----------------------------------------------------------------------------------- BNP Paribas Finance, Inc., 2.65%, 8/26/08 2,000,000 1,991,756 - ----------------------------------------------------------------------------------- Citigroup Funding, Inc.: 2.685%, 8/13/08 2 2,000,000 2,000,000 2.71%, 8/29/08 3,000,000 2,986,676 -------------- 11,978,432 - ----------------------------------------------------------------------------------- COMMERCIAL BANKS--3.0% ING (US) Funding LLC: 2.80%, 8/8/08 4,000,000 3,988,178 2.82%, 12/5/08 2,000,000 1,975,403 -------------- 5,963,581 - ----------------------------------------------------------------------------------- COMMERCIAL FINANCE--0.5% Caterpillar Financial Services Corp., Series F, 2.76%, 11/26/08 2 1,000,000 1,000,000 - ----------------------------------------------------------------------------------- FOOD PRODUCTS--1.3% Nestle Capital Corp.: 2.395%, 3/13/09 1 1,500,000 1,474,553 2.40%, 3/6/09 1 1,000,000 983,467 -------------- 2,458,020 - ----------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--1.9% Alta Mira LLC, Series 2004, 2.88%, 7/1/08 2 2,250,000 2,250,000 - ----------------------------------------------------------------------------------- Premier Senior Living LLC, Series 2007 A-H, 2.52%, 7/1/08 2 1,500,000 1,500,000 -------------- 3,750,000
F1 | OPPENHEIMER MONEY FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------ INSURANCE--5.9% Jackson National Life Global Funding, Series 2004-6, 2.56%, 7/15/08 2,3 $ 2,500,000 $ 2,500,000 - ------------------------------------------------------------------------------------ Jackson National Life Global Funding, Series 2008-1, 3.02%, 2/10/09 2,4 1,000,000 1,000,000 - ------------------------------------------------------------------------------------ Metropolitan Life Global Funding I, Series 2003-5, 2.57%, 9/12/08 2,4 4,000,000 4,000,000 - ------------------------------------------------------------------------------------ Security Life of Denver, 2.65%, 7/7/08 3 2,000,000 2,000,000 - ------------------------------------------------------------------------------------ United of Omaha Life Insurance Co., 2.66%, 12/29/08 2 2,000,000 2,000,000 --------------- 11,500,000 - ------------------------------------------------------------------------------------ LEASING & FACTORING--5.3% American Honda Finance Corp.: 2.795%, 11/20/08 2,4 3,000,000 3,000,000 2.796%, 12/10/08 2,4 2,500,000 2,500,000 2.98%, 5/5/09 2,4 3,000,000 3,000,000 - ------------------------------------------------------------------------------------ Toyota Motor Credit Corp., 2.75%, 9/15/08 2 2,000,000 2,000,000 --------------- 10,500,000 - ------------------------------------------------------------------------------------ MACHINERY--0.8% Jackson Tube Service, Inc., Series 2000, 3.25%, 7/1/08 2 1,500,000 1,500,000 - ------------------------------------------------------------------------------------ MUNICIPAL--3.5% Black Property Management LLC, Series 2006, 3.25%, 7/1/08 2 2,515,000 2,515,000 - ------------------------------------------------------------------------------------ Columbus, GA Development Authority Revenue Bonds, MAC Property LLC Project, Series 2007, 3.37%, 7/1/08 2 1,785,000 1,785,000 - ------------------------------------------------------------------------------------ Hayward, CA Multifamily Housing Revenue Bonds, Lord Tennyson Apts. Project, Series A-T, 2.68%, 7/1/08 2 710,000 710,000 - ------------------------------------------------------------------------------------ St. Johns Cnty., FL Industrial Development Authority Revenue Bonds, Presbyterian Retirement Communities Project, Series 2004B, 2.65%, 7/2/08 2 1,000,000 1,000,000 - ------------------------------------------------------------------------------------ Taxable Adjustable Demand Health Care Revenue Bonds, SFO Associates Project, Series 1994, 8.00%, 7/1/08 2 885,000 885,000 --------------- 6,895,000 - ------------------------------------------------------------------------------------ PERSONAL PRODUCTS--4.0% Reckitt Benckiser Treasury Services plc: 2.90%, 9/22/08 1 900,000 893,983 3%, 7/21/08 1 4,000,000 3,993,333 3%, 7/23/08 1 3,000,000 2,994,500 --------------- 7,881,816 - ------------------------------------------------------------------------------------ SPECIAL PURPOSE FINANCIAL--5.6% LINKS Finance LLC: 2.656%, 8/15/08 2,3 2,000,000 1,999,928 2.764%, 8/6/08 2,3 2,000,000 1,999,962 - ------------------------------------------------------------------------------------ Parkland (USA) LLC, 2.69%, 7/16/08 2,3 2,000,000 1,999,992 - ------------------------------------------------------------------------------------ Ticonderoga Funding LLC, 2.57%, 7/2/08 5,000,000 4,999,644 --------------- 10,999,526 --------------- Total Short-Term Notes (Cost $112,243,432) 112,243,432 - ------------------------------------------------------------------------------------ TOTAL INVESTMENTS, AT VALUE (COST $195,342,684) 99.5% 195,342,684 - ------------------------------------------------------------------------------------ OTHER ASSETS NET OF LIABILITIES 0.5 937,889 ----------------------------- NET ASSETS 100.0% $196,280,573 =============================
F2 | OPPENHEIMER MONEY FUND/VA FOOTNOTES TO STATEMENT OF INVESTMENTS SHORT-TERM NOTES AND DIRECT BANK OBLIGATIONS ARE GENERALLY TRADED ON A DISCOUNT BASIS; THE INTEREST RATE SHOWN IS THE DISCOUNT RATE RECEIVED BY THE FUND AT THE TIME OF PURCHASE. OTHER SECURITIES NORMALLY BEAR INTEREST AT THE RATES SHOWN. 1. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $41,781,596, or 21.29% of the Fund's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. 2. Represents the current interest rate for a variable or increasing rate security. 3. Illiquid security. The aggregate value of illiquid securities as of June 30, 2008 was $10,499,882, which represents 5.35% of the Fund's net assets. See Note 4 of accompanying Notes. 4. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $13,500,000 or 6.88% of the Fund's net assets as of June 30, 2008. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1--quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2--inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3--unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS* - ----------------------------------------------------------------------------------------- Level 1--Quoted Prices $ -- $ -- Level 2--Other Significant Observable Inputs 195,342,684 -- Level 3--Significant Unobservable Inputs -- -- ---------------------------------- Total $ 195,342,684 $ -- ==================================
*Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F3 | OPPENHEIMER MONEY FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------------------------------- Investments, at value (cost $195,342,684)--see accompanying statement of investments $ 195,342,684 - -------------------------------------------------------------------------------------------------------- Cash 144,215 - -------------------------------------------------------------------------------------------------------- Receivables and other assets: Shares of beneficial interest sold 944,408 Interest 233,141 Other 6,201 --------------- Total assets 196,670,649 - -------------------------------------------------------------------------------------------------------- LIABILITIES - -------------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 253,839 Dividends 101,638 Shareholder communications 14,074 Trustees' compensation 4,978 Transfer and shareholder servicing agent fees 877 Other 14,670 --------------- Total liabilities 390,076 - -------------------------------------------------------------------------------------------------------- NET ASSETS $ 196,280,573 =============== - -------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - -------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest 196,256 - -------------------------------------------------------------------------------------------------------- Additional paid-in capital 196,085,384 - -------------------------------------------------------------------------------------------------------- Accumulated net investment loss (1,065) - -------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments (2) --------------- NET ASSETS--applicable to 196,255,552 shares of beneficial interest outstanding $ 196,280,573 =============== - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $ 1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F4 | OPPENHEIMER MONEY FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------
For the Six Months Ended June 30, 2008 - -------------------------------------------------------------------- - -------------------------------------------------------------------- INVESTMENT INCOME - -------------------------------------------------------------------- Interest $3,616,737 - -------------------------------------------------------------------- EXPENSES - -------------------------------------------------------------------- Management fees 459,137 - -------------------------------------------------------------------- Shareholder communications 11,039 - -------------------------------------------------------------------- Transfer and shareholder servicing agent fees 4,983 - -------------------------------------------------------------------- Trustees' compensation 3,387 - -------------------------------------------------------------------- Administration service fees 750 - -------------------------------------------------------------------- Custodian fees and expenses 721 - -------------------------------------------------------------------- Other 14,767 ------------- Total expenses 494,784 - -------------------------------------------------------------------- NET INVESTMENT INCOME 3,121,953 - -------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,121,953 =============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F5 | OPPENHEIMER MONEY FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- OPERATIONS - ----------------------------------------------------------------------------------------------------------- Net investment income $ 3,121,953 $ 8,813,949 - ----------------------------------------------------------------------------------------------------------- Net realized gain (loss) -- (2) ---------------------------------- Net increase in net assets resulting from operations 3,121,953 8,813,947 - ----------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ----------------------------------------------------------------------------------------------------------- Dividends from net investment income (3,121,953) (8,813,949) - ----------------------------------------------------------------------------------------------------------- Distributions from net realized gain -- (3,645) - ----------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ----------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from beneficial interest transactions 6,531,998 18,231,526 - ----------------------------------------------------------------------------------------------------------- NET ASSETS - ----------------------------------------------------------------------------------------------------------- Total increase 6,531,998 18,227,879 - ----------------------------------------------------------------------------------------------------------- Beginning of period 189,748,575 171,520,696 ---------------------------------- End of period (including accumulated net investment loss of $1,065 and $1,065, respectively) $ 196,280,573 $ 189,748,575 ==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F6 | OPPENHEIMER MONEY FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - ------------------------------------------------------------------------------------------------------------------------- Income from investment operations-net investment income and net realized gain .02 1 .05 1 .05 1 .03 1 .01 1 .01 - ------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.02) (.05) (.05) (.03) (.01) (.01) Distributions from net realized gain -- -- 2 -- 2 -- -- -- ------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.02) (.05) (.05) (.03) (.01) (.01) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ===================================================================================== - ------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN 3 1.53% 4.98% 4.71% 2.86% 0.98% 0.79% - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 196,281 $ 189,749 $ 171,521 $ 173,162 $ 196,503 $ 237,613 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 205,216 $ 181,271 $ 171,118 $ 186,453 $ 218,243 $ 316,096 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 3.06% 4.86% 4.61% 2.80% 0.97% 0.80% Total expenses 0.48% 0.50% 5 0.49% 0.48% 5 0.48% 5 0.47% 5
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F7 | OPPENHEIMER MONEY FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Money Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek maximum current income from investments in "money market" securities consistent with low capital risk and the maintenance of liquidity. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. Securities are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined under procedures approved by the Fund's Board of Trustees. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. "Money market-type" instruments are typically designated as Level 2. In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes net capital loss carryforward as follows:
EXPIRING ---------------- 2015 $2
F8 | OPPENHEIMER MONEY FUND/VA As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $2 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will utilize not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually but may be paid at other times to maintain the net asset value per share at $1.00. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. F9 | OPPENHEIMER MONEY FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------- Sold 64,038,348 $ 64,038,348 142,287,227 $ 142,287,227 Dividends and/or distributions reinvested 3,121,953 3,121,953 8,817,594 8,817,594 Redeemed (60,628,303) (60,628,303) (132,873,295) (132,873,295) --------------------------------------------------------------- Net increase 6,531,998 $ 6,531,998 18,231,526 $ 18,231,526 ===============================================================
- -------------------------------------------------------------------------------- 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ------------------------------------- Up to $500 million 0.450% Next $500 million 0.425 Next $500 million 0.400 Over $1.5 billion 0.375
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $4,995 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 for assets of $10 million or more. The Fund is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees to 0.35% of average annual net assets of the Fund. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- 4. ILLIQUID SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. - -------------------------------------------------------------------------------- 5. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F10 | OPPENHEIMER MONEY FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 5 | OPPENHEIMER MONEY FUND/VA JUNE 30, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management Main Street Small Cap Commentaries Fund(R)/VA and A Series of Oppenheimer Variable Account Funds Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTARIES Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 30, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL JANUARY 1, 2008 JUNE 30, 2008 JUNE 30, 2008 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- Non-Service shares $1,000.00 $ 909.50 $3.42 - ----------------------------------------------------------------------------------------------------- Service shares 1,000.00 908.20 4.57 HYPOTHETICAL (5% return before expenses) - ----------------------------------------------------------------------------------------------------- Non-Service shares 1,000.00 1,021.28 3.62 - ----------------------------------------------------------------------------------------------------- Service shares 1,000.00 1,020.09 4.83
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2008 are as follows:
CLASS EXPENSE RATIOS - ------------------------------------------- Non-Service shares 0.72% - ------------------------------------------- Service shares 0.96
The expense ratios reflect reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 5 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. 6 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS June 30, 2008 / Unaudited - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- COMMON STOCKS--99.1% - ----------------------------------------------------------------------------- CONSUMER DISCRETIONARY--13.6% - ----------------------------------------------------------------------------- AUTO COMPONENTS--1.0% American Axle & Manufacturing Holdings, Inc. 1 101,900 $ 814,181 - ----------------------------------------------------------------------------- Amerigon, Inc. 1,2 2,900 20,619 - ----------------------------------------------------------------------------- ArvinMeritor, Inc. 1 21,900 273,312 - ----------------------------------------------------------------------------- ATC Technology Corp. 2 17,300 402,744 - ----------------------------------------------------------------------------- Autoliv, Inc. 29,600 1,379,952 - ----------------------------------------------------------------------------- Borg-Warner Automotive, Inc. 2,500 110,950 - ----------------------------------------------------------------------------- Cooper Tire & Rubber Co. 1 35,800 280,672 - ----------------------------------------------------------------------------- Drew Industries, Inc. 1,2 18,800 299,860 - ----------------------------------------------------------------------------- Exide Technologies 1,2 42,500 712,300 - ----------------------------------------------------------------------------- Fuel Systems Solutions, Inc. 1,2 9,899 381,112 - ----------------------------------------------------------------------------- Gentex Corp. 69,100 997,804 - ----------------------------------------------------------------------------- Lear Corp. 2 104,700 1,484,646 - ----------------------------------------------------------------------------- Shiloh Industries, Inc. 2,900 27,231 - ----------------------------------------------------------------------------- Stoneridge, Inc. 2 31,000 528,860 - ----------------------------------------------------------------------------- Tenneco, Inc. 1,2 53,000 717,090 - ----------------------------------------------------------------------------- TRW Automotive Holdings Corp. 2 33,000 609,510 - ----------------------------------------------------------------------------- WABCO Holdings, Inc. 1,900 88,274 -------------- 9,129,117 - ----------------------------------------------------------------------------- AUTOMOBILES--0.2% Thor Industries, Inc. 1 67,700 1,439,302 - ----------------------------------------------------------------------------- DISTRIBUTORS--0.1% Core-Mark Holding Co., Inc. 1,2 3,400 89,080 - ----------------------------------------------------------------------------- LKQ Corp. 2 49,700 898,079 -------------- 987,159 - ----------------------------------------------------------------------------- DIVERSIFIED CONSUMER SERVICES--0.7% Capella Education Co. 1,2 9,900 590,535 - ----------------------------------------------------------------------------- Coinstar, Inc. 1,2 29,500 964,945 - ----------------------------------------------------------------------------- DeVry, Inc. 34,500 1,849,890 - ----------------------------------------------------------------------------- Hillenbrand, Inc. 2,100 44,940 - ----------------------------------------------------------------------------- K12, Inc. 1,2 1,080 23,144 - ----------------------------------------------------------------------------- Learning Tree International, Inc. 1,2 900 15,390 - ----------------------------------------------------------------------------- Matthews International Corp., Cl. A 1 15,400 697,004 - ----------------------------------------------------------------------------- Noah Education Holdings Ltd., ADR 2 23,390 126,306 - ----------------------------------------------------------------------------- Regis Corp. 31,100 819,485 - ----------------------------------------------------------------------------- Service Corp. International 67,700 667,522 - ----------------------------------------------------------------------------- Steiner Leisure Ltd. 2 9,200 260,820 - ----------------------------------------------------------------------------- Stewart Enterprises, Inc. 1 75,000 540,000 - ----------------------------------------------------------------------------- Strayer Education, Inc. 700 146,349 -------------- 6,746,330 - ----------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--1.4% Ambassadors Group, Inc. 1 1,500 22,380 - ----------------------------------------------------------------------------- Bally Technologies, Inc. 2 18,000 608,400
SHARES VALUE - ----------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE Continued Bob Evans Farms, Inc. 1 82,014 $ 2,345,600 - ----------------------------------------------------------------------------- Brinker International, Inc. 82,600 1,561,140 - ----------------------------------------------------------------------------- CBRL Group, Inc. 1 49,350 1,209,569 - ----------------------------------------------------------------------------- CEC Entertainment, Inc. 1,2 31,700 887,917 - ----------------------------------------------------------------------------- Churchill Downs, Inc. 1 2,800 97,636 - ----------------------------------------------------------------------------- Denny's Corp. 1,2 159,100 451,844 - ----------------------------------------------------------------------------- International Speedway Corp. 16,100 628,383 - ----------------------------------------------------------------------------- Jack in the Box, Inc. 2 54,300 1,216,863 - ----------------------------------------------------------------------------- Krispy Kreme Doughnuts, Inc. 2 22,600 112,774 - ----------------------------------------------------------------------------- Marcus Corp. (The) 1 11,100 165,945 - ----------------------------------------------------------------------------- Papa John's International, Inc. 2 26,033 692,217 - ----------------------------------------------------------------------------- Riviera Holdings Corp. 2 700 7,105 - ----------------------------------------------------------------------------- Speedway Motorsports, Inc. 11,600 236,408 - ----------------------------------------------------------------------------- WMS Industries, Inc. 1,2 55,900 1,664,143 - ----------------------------------------------------------------------------- Wyndham Worldwide Corp. 59,800 1,071,018 -------------- 12,979,342 - ----------------------------------------------------------------------------- HOUSEHOLD DURABLES--1.2% American Greetings Corp., Cl. A 1 123,600 1,525,224 - ----------------------------------------------------------------------------- Blyth, Inc. 1 56,580 680,657 - ----------------------------------------------------------------------------- Cavco Industries, Inc. 1,2 3,800 124,374 - ----------------------------------------------------------------------------- Centex Corp. 2,100 28,077 - ----------------------------------------------------------------------------- Champion Enterprises, Inc. 1,2 168,800 987,480 - ----------------------------------------------------------------------------- CSS Industries, Inc. 12,150 294,273 - ----------------------------------------------------------------------------- Ethan Allen Interiors, Inc. 1 17,100 420,660 - ----------------------------------------------------------------------------- Furniture Brands International, Inc. 1 52,300 698,728 - ----------------------------------------------------------------------------- Helen of Troy Ltd. 1,2 30,700 494,884 - ----------------------------------------------------------------------------- Hooker Furniture Corp. 1 24,100 417,412 - ----------------------------------------------------------------------------- La-Z-Boy, Inc. 1 37,300 285,345 - ----------------------------------------------------------------------------- Lennar Corp., Cl. A 1 86,300 1,064,942 - ----------------------------------------------------------------------------- National Presto Industries, Inc. 1 5,200 333,736 - ----------------------------------------------------------------------------- NVR, Inc. 1,2 3,100 1,550,248 - ----------------------------------------------------------------------------- Ryland Group, Inc. (The) 72,000 1,570,320 - ----------------------------------------------------------------------------- Snap-On, Inc. 20,400 1,061,004 - ----------------------------------------------------------------------------- Universal Electronics, Inc. 2 1,900 39,710 -------------- 11,577,074 - ----------------------------------------------------------------------------- INTERNET & CATALOG RETAIL--0.8% 1-800-FLOWERS.com, Inc. 1,2 65,800 424,410 - ----------------------------------------------------------------------------- FTD Group, Inc. 10,700 142,631 - ----------------------------------------------------------------------------- Gaiam, Inc. 2 8,700 117,537 - ----------------------------------------------------------------------------- IAC/InterActiveCorp 2 39,900 769,272 - ----------------------------------------------------------------------------- Liberty Media Corp.-Interactive, Series A 2 82,900 1,223,604 - ----------------------------------------------------------------------------- NetFlix.com, Inc. 1,2 92,000 2,398,440 - ----------------------------------------------------------------------------- Overstock.com, Inc. 1,2 11,600 301,020 - ----------------------------------------------------------------------------- PetMed Express, Inc. 1,2 20,700 253,575
F1 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- INTERNET & CATALOG RETAIL Continued Priceline.com, Inc. 1,2 18,700 $ 2,159,102 - ----------------------------------------------------------------------------- Stamps.com, Inc. 2 12,700 158,496 -------------- 7,948,087 - ----------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.8% Brunswick Corp. 1 54,800 580,880 - ----------------------------------------------------------------------------- Callaway Golf Co. 1 175,600 2,077,348 - ----------------------------------------------------------------------------- Hasbro, Inc. 19,600 700,112 - ----------------------------------------------------------------------------- JAKKS Pacific, Inc. 1,2 54,600 1,193,010 - ----------------------------------------------------------------------------- Leapfrog Enterprises, Inc. 1,2 37,400 311,168 - ----------------------------------------------------------------------------- Polaris Industries, Inc. 1 56,800 2,293,584 - ----------------------------------------------------------------------------- Steinway Musical Instruments, Inc. 1,2 1,360 35,904 -------------- 7,192,006 - ----------------------------------------------------------------------------- MEDIA--1.2% Belo Corp., Cl. A 1 32,100 234,651 - ----------------------------------------------------------------------------- Cablevision Systems Corp. New York Group, Cl. A 2 29,500 666,700 - ----------------------------------------------------------------------------- Charter Communications, Inc., Cl. A 1,2 247,500 259,875 - ----------------------------------------------------------------------------- Cox Radio, Inc., Cl. A 1,2 23,300 274,940 - ----------------------------------------------------------------------------- CTC Media, Inc. 2 8,000 197,280 - ----------------------------------------------------------------------------- Cumulus Media, Inc., Cl. A 2 24,100 94,954 - ----------------------------------------------------------------------------- DG Fastchannel, Inc. 1,2 3,600 62,100 - ----------------------------------------------------------------------------- DreamWorks Animation SKG, Inc., Cl. A 2 43,300 1,290,773 - ----------------------------------------------------------------------------- Entravision Communications Corp. 2 138,000 554,760 - ----------------------------------------------------------------------------- Gannett Co., Inc. 26,000 563,420 - ----------------------------------------------------------------------------- Getty Images, Inc. 2 36,200 1,228,266 - ----------------------------------------------------------------------------- Global Sources Ltd. 1,2 57,100 866,778 - ----------------------------------------------------------------------------- Harte-Hanks, Inc. 1 31,800 364,110 - ----------------------------------------------------------------------------- Lin TV Corp., Cl. A 1,2 15,600 92,976 - ----------------------------------------------------------------------------- Marvel Entertainment, Inc. 2 52,100 1,674,494 - ----------------------------------------------------------------------------- McClatchy Co., Cl. A 1 19,700 133,566 - ----------------------------------------------------------------------------- Scholastic Corp. 1,2 58,000 1,662,280 - ----------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., Cl. A 1 103,600 787,360 - ----------------------------------------------------------------------------- Warner Music Group Corp. 1 12,400 88,536 -------------- 11,097,819 - ----------------------------------------------------------------------------- MULTILINE RETAIL--0.9% 99 Cents Only Stores 1,2 24,500 161,700 - ----------------------------------------------------------------------------- Big Lots, Inc. 1,2 152,400 4,760,976 - ----------------------------------------------------------------------------- Dollar Tree, Inc. 2 69,000 2,255,610 - ----------------------------------------------------------------------------- Family Dollar Stores, Inc. 24,600 490,524 - ----------------------------------------------------------------------------- Fred's, Inc. 1 36,064 405,359 - ----------------------------------------------------------------------------- Macy's, Inc. 37,000 718,540 -------------- 8,792,709
SHARES VALUE - ----------------------------------------------------------------------------- SPECIALTY RETAIL--3.6% Aaron Rents, Inc. 1 8,900 $ 198,737 - ----------------------------------------------------------------------------- Aeropostale, Inc. 1,2 131,600 4,123,028 - ----------------------------------------------------------------------------- AnnTaylor Stores Corp. 1,2 44,200 1,059,032 - ----------------------------------------------------------------------------- Asbury Automotive Group, Inc. 1 37,500 481,875 - ----------------------------------------------------------------------------- AutoNation, Inc. 1,2 91,300 914,826 - ----------------------------------------------------------------------------- AutoZone, Inc. 2 4,200 508,242 - ----------------------------------------------------------------------------- bebe stores, inc. 1 56,800 545,848 - ----------------------------------------------------------------------------- Blockbuster, Inc., Cl. A 1,2 51,435 128,588 - ----------------------------------------------------------------------------- Books-A-Million, Inc. 1 3,400 26,044 - ----------------------------------------------------------------------------- Brown Shoe Co., Inc. 1 72,875 987,456 - ----------------------------------------------------------------------------- Buckle, Inc. (The) 1 68,700 3,141,651 - ----------------------------------------------------------------------------- Children's Place Retail Stores, Inc. 1,2 21,200 765,320 - ----------------------------------------------------------------------------- Conn's, Inc. 1,2 13,500 216,945 - ----------------------------------------------------------------------------- Dress Barn, Inc. (The) 1,2 105,900 1,416,942 - ----------------------------------------------------------------------------- Finish Line, Inc. (The), Cl. A 104,000 904,800 - ----------------------------------------------------------------------------- Foot Locker, Inc. 150,600 1,874,970 - ----------------------------------------------------------------------------- Group 1 Automotive, Inc. 20,300 403,361 - ----------------------------------------------------------------------------- Gymboree Corp. 2 33,300 1,334,331 - ----------------------------------------------------------------------------- Haverty Furniture Cos., Inc. 1 2,200 22,088 - ----------------------------------------------------------------------------- Hot Topic, Inc. 2 14,400 77,904 - ----------------------------------------------------------------------------- Jo-Ann Stores, Inc. 1,2 40,200 925,806 - ----------------------------------------------------------------------------- Limited Brands, Inc. 26,600 448,210 - ----------------------------------------------------------------------------- Lumber Liquidators, Inc. 2 1,300 16,900 - ----------------------------------------------------------------------------- Monro Muffler Brake, Inc. 1 3,800 58,862 - ----------------------------------------------------------------------------- New York & Co., Inc. 1,2 50,700 462,891 - ----------------------------------------------------------------------------- Office Depot, Inc. 2 82,000 897,080 - ----------------------------------------------------------------------------- OfficeMax, Inc. 80,500 1,118,950 - ----------------------------------------------------------------------------- Penske Automotive Group, Inc. 1 108,700 1,602,238 - ----------------------------------------------------------------------------- Pier 1 Imports, Inc. 1,2 71,300 245,272 - ----------------------------------------------------------------------------- RadioShack Corp. 178,000 2,184,060 - ----------------------------------------------------------------------------- Rent-A-Center, Inc. 2 93,800 1,929,466 - ----------------------------------------------------------------------------- Ross Stores, Inc. 38,500 1,367,520 - ----------------------------------------------------------------------------- Sally Beauty Holdings, Inc. 1,2 236,800 1,529,728 - ----------------------------------------------------------------------------- Sonic Automotive, Inc. 1 2,500 32,225 - ----------------------------------------------------------------------------- Systemax, Inc. 16,400 289,460 - ----------------------------------------------------------------------------- Tractor Supply Co. 1,2 47,200 1,370,688 - ----------------------------------------------------------------------------- Urban Outfitters, Inc. 2 1,900 59,261 - ----------------------------------------------------------------------------- Wet Seal, Inc., Cl. A 1,2 55,300 263,781 -------------- 33,934,386 - ----------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--1.7% Carter's, Inc. 1,2 45,300 626,046 - ----------------------------------------------------------------------------- Columbia Sportswear Co. 1 8,600 316,050 - ----------------------------------------------------------------------------- Deckers Outdoor Corp. 1,2 7,300 1,016,160 - ----------------------------------------------------------------------------- Fossil, Inc. 1,2 26,600 773,262 - ----------------------------------------------------------------------------- Hanesbrands, Inc. 2 32,900 892,906
F2 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS Continued Jones Apparel Group, Inc. 135,900 $ 1,868,625 - ----------------------------------------------------------------------------- Liz Claiborne, Inc. 1 140,900 1,993,735 - ----------------------------------------------------------------------------- Maidenform Brands, Inc. 1,2 14,100 190,350 - ----------------------------------------------------------------------------- Movado Group, Inc. 4,500 89,100 - ----------------------------------------------------------------------------- Perry Ellis International, Inc. 1,2 32,400 687,528 - ----------------------------------------------------------------------------- Polo Ralph Lauren Corp., Cl. A 3,300 207,174 - ----------------------------------------------------------------------------- Skechers USA, Inc., Cl. A 1,2 34,400 679,744 - ----------------------------------------------------------------------------- Timberland Co., Cl. A 1,2 9,100 148,785 - ----------------------------------------------------------------------------- True Religion Apparel, Inc. 1,2 25,100 668,915 - ----------------------------------------------------------------------------- UniFirst Corp. 1 2,600 116,116 - ----------------------------------------------------------------------------- Warnaco Group, Inc. (The) 1,2 64,400 2,838,108 - ----------------------------------------------------------------------------- Wolverine World Wide, Inc. 1 97,150 2,590,991 -------------- 15,703,595 - ----------------------------------------------------------------------------- CONSUMER STAPLES--3.4% - ----------------------------------------------------------------------------- BEVERAGES--0.1% Boston Beer Co., Inc., Cl. A 1,2 7,700 313,236 - ----------------------------------------------------------------------------- Coca-Cola Enterprises, Inc. 13,600 235,280 - ----------------------------------------------------------------------------- Pepsi Bottling Group, Inc. (The) 10,600 295,952 -------------- 844,468 - ----------------------------------------------------------------------------- FOOD & STAPLES RETAILING--0.8% Arden Group, Inc., Cl. A 1,505 190,744 - ----------------------------------------------------------------------------- BJ's Wholesale Club, Inc. 2 49,300 1,907,910 - ----------------------------------------------------------------------------- Casey's General Stores, Inc. 78,600 1,821,162 - ----------------------------------------------------------------------------- China Nepstar Chain Drugstore Ltd., ADR 3,130 27,106 - ----------------------------------------------------------------------------- Ingles Markets, Inc., Cl. A 1 9,300 216,969 - ----------------------------------------------------------------------------- Longs Drug Stores, Inc. 42,000 1,768,620 - ----------------------------------------------------------------------------- Nash Finch Co. 1 18,400 630,568 - ----------------------------------------------------------------------------- Spartan Stores, Inc. 25,800 593,400 -------------- 7,156,479 - ----------------------------------------------------------------------------- FOOD PRODUCTS--1.3% Agria Corp., ADR 2 9,000 38,520 - ----------------------------------------------------------------------------- Chiquita Brands International, Inc. 1,2 108,900 1,652,013 - ----------------------------------------------------------------------------- Darling International, Inc. 2 163,800 2,705,976 - ----------------------------------------------------------------------------- Del Monte Foods Co. 140,800 999,680 - ----------------------------------------------------------------------------- Diamond Foods, Inc. 13,500 311,040 - ----------------------------------------------------------------------------- Flowers Foods, Inc. 1 76,250 2,160,925 - ----------------------------------------------------------------------------- Fresh Del Monte Produce, Inc. 2 69,300 1,633,401 - ----------------------------------------------------------------------------- Green Mountain Coffee, Inc. 1,2 15,800 593,606 - ----------------------------------------------------------------------------- J&J Snack Foods Corp. 1 1,200 32,892 - ----------------------------------------------------------------------------- Omega Protein Corp. 2 12,200 182,390 - ----------------------------------------------------------------------------- Reddy Ice Holdings, Inc. 1 5,900 80,712 - ----------------------------------------------------------------------------- TreeHouse Foods, Inc. 2 13,700 332,362 - ----------------------------------------------------------------------------- Tyson Foods, Inc., Cl. A 74,300 1,110,042 -------------- 11,833,559
SHARES VALUE - ----------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--0.0% Central Garden & Pet Co., Cl. A 2 2,900 $ 11,890 - ----------------------------------------------------------------------------- WD-40 Co. 1 14,086 412,016 -------------- 423,906 - ----------------------------------------------------------------------------- PERSONAL PRODUCTS--0.9% American Oriental Bioengineering, Inc. 1,2 138,700 1,368,969 - ----------------------------------------------------------------------------- Chattem, Inc. 1,2 35,300 2,296,265 - ----------------------------------------------------------------------------- Elizabeth Arden, Inc. 2 15,700 238,326 - ----------------------------------------------------------------------------- Herbalife Ltd. 21,200 821,500 - ----------------------------------------------------------------------------- Inter Parfums, Inc. 1 19,450 291,750 - ----------------------------------------------------------------------------- NBTY, Inc. 2 58,600 1,878,716 - ----------------------------------------------------------------------------- Nu Skin Asia Pacific, Inc., Cl. A 1 63,100 941,452 - ----------------------------------------------------------------------------- Prestige Brands Holdings, Inc. 1,2 29,400 313,404 -------------- 8,150,382 - ----------------------------------------------------------------------------- TOBACCO--0.3% Universal Corp. 61,500 2,781,030 - ----------------------------------------------------------------------------- Vector Group Ltd. 1 19,895 320,906 -------------- 3,101,936 - ----------------------------------------------------------------------------- ENERGY--9.1% - ----------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--4.3% Atwood Oceanics, Inc. 1,2 7,200 895,248 - ----------------------------------------------------------------------------- Basic Energy Services, Inc. 2 6,700 211,050 - ----------------------------------------------------------------------------- BJ Services Co. 27,100 865,574 - ----------------------------------------------------------------------------- Bristow Group, Inc. 1,2 24,600 1,217,454 - ----------------------------------------------------------------------------- Complete Production Services, Inc. 2 20,600 750,252 - ----------------------------------------------------------------------------- Dawson Geophysical Co. 1,2 2,800 166,488 - ----------------------------------------------------------------------------- Dresser-Rand Group, Inc. 2 8,000 312,800 - ----------------------------------------------------------------------------- Dril-Quip, Inc. 2 22,675 1,428,525 - ----------------------------------------------------------------------------- ENGlobal Corp. 1,2 5,200 74,048 - ----------------------------------------------------------------------------- ENSCO International, Inc. 34,165 2,758,482 - ----------------------------------------------------------------------------- FMC Technologies, Inc. 2 33,300 2,561,769 - ----------------------------------------------------------------------------- Forbes Energy Services Ltd. 2,3 101,800 797,668 - ----------------------------------------------------------------------------- Grey Wolf, Inc. 1,2 340,900 3,078,327 - ----------------------------------------------------------------------------- Gulf Island Fabrication, Inc. 21,200 1,037,316 - ----------------------------------------------------------------------------- Gulfmark Offshore, Inc. 1,2 37,800 2,199,204 - ----------------------------------------------------------------------------- Hornbeck Offshore Services, Inc. 1,2 25,000 1,412,750 - ----------------------------------------------------------------------------- ION Geophysical Corp. 1,2 75,100 1,310,495 - ----------------------------------------------------------------------------- Lufkin Industries, Inc. 16,900 1,407,432 - ----------------------------------------------------------------------------- NATCO Group, Inc., Cl. A 1,2 24,200 1,319,626 - ----------------------------------------------------------------------------- Natural Gas Services Group 2 7,700 234,696 - ----------------------------------------------------------------------------- Newpark Resources, Inc. 1,2 92,597 727,812 - ----------------------------------------------------------------------------- North American Energy Partners, Inc. 2 12,400 268,832 - ----------------------------------------------------------------------------- Oil States International, Inc. 1,2 59,800 3,793,712 - ----------------------------------------------------------------------------- Patterson-UTI Energy, Inc. 62,800 2,263,312
F3 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES Continued Pioneer Drilling Co. 2 59,700 $ 1,122,957 - ----------------------------------------------------------------------------- Pride International, Inc. 2 18,400 870,136 - ----------------------------------------------------------------------------- Rowan Cos., Inc. 1 14,900 696,575 - ----------------------------------------------------------------------------- Seacor Holdings, Inc. 2 26,000 2,327,260 - ----------------------------------------------------------------------------- T-3 Energy Services, Inc. 2 14,300 1,136,421 - ----------------------------------------------------------------------------- Technicoil Corp. 2 7,100 8,843 - ----------------------------------------------------------------------------- Technicoil Corp. 2 126,700 157,800 - ----------------------------------------------------------------------------- Union Drilling, Inc. 1,2 15,248 330,577 - ----------------------------------------------------------------------------- Unit Corp. 2 24,100 1,999,577 - ----------------------------------------------------------------------------- Willbros Group, Inc. 2 4,300 188,383 -------------- 39,931,401 - ----------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS--4.8% Alberta Clipper Energy, Inc. 2 3,287 10,992 - ----------------------------------------------------------------------------- Alpha Natural Resources, Inc. 1,2 24,600 2,565,534 - ----------------------------------------------------------------------------- Arena Resources, Inc. 2 4,700 248,254 - ----------------------------------------------------------------------------- Arlington Tankers Ltd. 1 5,900 136,998 - ----------------------------------------------------------------------------- Berry Petroleum Co., Cl. A 1 36,500 2,149,120 - ----------------------------------------------------------------------------- Bill Barrett Corp. 1,2 23,400 1,390,194 - ----------------------------------------------------------------------------- Bois d'Arc Energy, Inc. 2 50,300 1,222,793 - ----------------------------------------------------------------------------- Brigham Exploration Co. 1,2 29,600 468,568 - ----------------------------------------------------------------------------- Callon Petroleum Co. 2 22,700 621,072 - ----------------------------------------------------------------------------- Celtic Exploration Ltd. 2 2,800 54,287 - ----------------------------------------------------------------------------- Cimarex Energy Co. 26,700 1,860,189 - ----------------------------------------------------------------------------- Concho Resources, Inc. 2 16,400 611,720 - ----------------------------------------------------------------------------- Continental Resources, Inc. 1,2 1,400 97,048 - ----------------------------------------------------------------------------- Delphi Energy Corp. 2 3,700 11,176 - ----------------------------------------------------------------------------- Delta Petroleum Corp. 1,2 11,700 298,584 - ----------------------------------------------------------------------------- Denbury Resources, Inc. 2 37,100 1,354,150 - ----------------------------------------------------------------------------- Energy Partners Ltd. 2 33,700 502,804 - ----------------------------------------------------------------------------- Galleon Energy, Inc., Cl. A 2 5,050 102,020 - ----------------------------------------------------------------------------- Galleon Energy, Inc., Subscription Receipts 2 11,250 227,273 - ----------------------------------------------------------------------------- Gasco Energy, Inc. 2 113,200 469,780 - ----------------------------------------------------------------------------- General Maritime Corp. 30,600 794,988 - ----------------------------------------------------------------------------- GMX Resources, Inc. 1,2 600 44,460 - ----------------------------------------------------------------------------- Great Plains Exploration, Inc. 2 32,360 30,148 - ----------------------------------------------------------------------------- Jura Energy Corp. 2 110,300 54,085 - ----------------------------------------------------------------------------- Knightsbridge Tankers Ltd. 15,500 499,255 - ----------------------------------------------------------------------------- Mariner Energy, Inc. 1,2 98,100 3,626,757 - ----------------------------------------------------------------------------- Massey Energy Co. 46,900 4,396,875 - ----------------------------------------------------------------------------- Midnight Oil Exploration Ltd. 2 45,050 91,010 - ----------------------------------------------------------------------------- Noble Energy, Inc. 3,200 321,792 - ----------------------------------------------------------------------------- Nordic American Tanker Shipping Ltd. 5,200 201,864 - ----------------------------------------------------------------------------- Overseas Shipholding Group, Inc. 13,900 1,105,328 - ----------------------------------------------------------------------------- Paramount Resources Ltd., Cl. A 2 4,500 91,527
SHARES VALUE - ----------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS Continued Petrohawk Energy Corp. 1,2 56,500 $ 2,616,515 - ----------------------------------------------------------------------------- PetroQuest Energy, Inc. 1,2 51,700 1,390,730 - ----------------------------------------------------------------------------- Rosetta Resources, Inc. 2 68,700 1,957,950 - ----------------------------------------------------------------------------- Stone Energy Corp. 2 49,700 3,275,727 - ----------------------------------------------------------------------------- Swift Energy Co. 1,2 55,200 3,646,512 - ----------------------------------------------------------------------------- Teekay Tankers Ltd., Cl. A 1 16,500 382,965 - ----------------------------------------------------------------------------- Tristar Oil & Gas Ltd. 2 4,800 97,064 - ----------------------------------------------------------------------------- Tusk Energy Corp. 2 38,312 109,334 - ----------------------------------------------------------------------------- Tusk Energy Corp. 2,4 21,300 60,786 - ----------------------------------------------------------------------------- Tusk Energy Corp. 2 77,900 222,310 - ----------------------------------------------------------------------------- VAALCO Energy, Inc. 1,2 122,780 1,039,947 - ----------------------------------------------------------------------------- Venoco, Inc. 2 7,400 171,754 - ----------------------------------------------------------------------------- VeraSun Energy Corp. 1,2 63,300 261,429 - ----------------------------------------------------------------------------- Vero Energy, Inc. 2 22,282 237,745 - ----------------------------------------------------------------------------- W&T Offshore, Inc. 1 56,900 3,329,219 - ----------------------------------------------------------------------------- Warren Resources, Inc. 1,2 28,900 424,252 - ----------------------------------------------------------------------------- Whiting Petroleum Corp. 2 3,900 413,712 -------------- 45,298,596 - ----------------------------------------------------------------------------- FINANCIALS--12.9% - ----------------------------------------------------------------------------- CAPITAL MARKETS--0.8% GAMCO Investors, Inc., Cl. A 1 15,940 790,943 - ----------------------------------------------------------------------------- Invesco Ltd. 52,200 1,251,756 - ----------------------------------------------------------------------------- Knight Capital Group, Inc., Cl. A 2 176,600 3,175,268 - ----------------------------------------------------------------------------- NGP Capital Resources Co. 1 6,900 106,329 - ----------------------------------------------------------------------------- optionsXpress Holdings, Inc. 1 41,100 918,174 - ----------------------------------------------------------------------------- Prospect Capital Corp. 1 2,500 32,950 - ----------------------------------------------------------------------------- Stifel Financial Corp. 2 6,350 218,377 - ----------------------------------------------------------------------------- SWS Group, Inc. 1 16,750 278,218 - ----------------------------------------------------------------------------- TD Ameritrade Holding Corp. 2 51,100 924,399 - ----------------------------------------------------------------------------- U.S. Global Investors, Inc., Cl. A 1 6,400 107,200 - ----------------------------------------------------------------------------- Waddell & Reed Financial, Inc., Cl. A 400 14,004 -------------- 7,817,618 - ----------------------------------------------------------------------------- COMMERCIAL BANKS--1.9% BancFirst Corp. 3,000 128,400 - ----------------------------------------------------------------------------- Banco Latinoamericano de Exportaciones SA, Cl. E 10,500 169,995 - ----------------------------------------------------------------------------- Chemical Financial Corp. 1 12,000 244,800 - ----------------------------------------------------------------------------- City Holding Co. 20,100 819,477 - ----------------------------------------------------------------------------- Community Bank System, Inc. 1 46,300 954,706 - ----------------------------------------------------------------------------- Community Trust Bancorp, Inc. 1 7,000 183,820 - ----------------------------------------------------------------------------- First Community Bancshares, Inc. 1 4,065 114,633 - ----------------------------------------------------------------------------- First Financial Bancorp 1 12,200 112,240 - ----------------------------------------------------------------------------- First Horizon National Corp. 98,200 729,626 - ----------------------------------------------------------------------------- First Merchants Corp. 1 14,700 266,805 - ----------------------------------------------------------------------------- First Security Group, Inc. 14,800 82,584
F4 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- COMMERCIAL BANKS Continued FirstMerit Corp. 1 20,800 $ 339,248 - ----------------------------------------------------------------------------- Frontier Financial Corp. 1 25,900 220,668 - ----------------------------------------------------------------------------- Harleysville National Corp. 1 800 8,928 - ----------------------------------------------------------------------------- IBERIABANK Corp. 1 1,900 84,493 - ----------------------------------------------------------------------------- Independent Bank Corp., Massachusetts 1 4,000 95,360 - ----------------------------------------------------------------------------- International Bancshares Corp. 19,700 420,989 - ----------------------------------------------------------------------------- Investors Bancorp, Inc. 1,2 5,200 67,912 - ----------------------------------------------------------------------------- MainSource Financial Group, Inc. 1 3,900 60,450 - ----------------------------------------------------------------------------- National Penn Bancshares, Inc. 1 47,200 626,816 - ----------------------------------------------------------------------------- NBT Bancorp, Inc. 1 29,000 597,690 - ----------------------------------------------------------------------------- Old National Bancorp 1 73,590 1,049,393 - ----------------------------------------------------------------------------- Oriental Financial Group, Inc. 1 31,000 442,060 - ----------------------------------------------------------------------------- Pacific Capital Bancorp 1 91,600 1,262,248 - ----------------------------------------------------------------------------- Park National Corp. 1 5,000 269,500 - ----------------------------------------------------------------------------- Popular, Inc. 1 81,600 537,744 - ----------------------------------------------------------------------------- Porter Bancorp, Inc. 2,400 36,024 - ----------------------------------------------------------------------------- Renasant Corp. 1 4,000 58,920 - ----------------------------------------------------------------------------- S&T Bancorp, Inc. 2,700 78,462 - ----------------------------------------------------------------------------- Signature Bank 2 2,000 51,520 - ----------------------------------------------------------------------------- Simmons First National Corp. 6,800 190,196 - ----------------------------------------------------------------------------- Southside Bancshares, Inc. 1 7,500 138,300 - ----------------------------------------------------------------------------- Sterling Bancorp 28,400 339,380 - ----------------------------------------------------------------------------- Susquehanna Bancshares, Inc. 1 68,800 941,872 - ----------------------------------------------------------------------------- SVB Financial Group 2 19,700 947,767 - ----------------------------------------------------------------------------- TCF Financial Corp. 1 125,500 1,509,765 - ----------------------------------------------------------------------------- Tompkins Financial Corp. 1 5,700 212,040 - ----------------------------------------------------------------------------- UMB Financial Corp. 4,700 240,969 - ----------------------------------------------------------------------------- Webster Financial Corp. 73,500 1,367,100 - ----------------------------------------------------------------------------- WesBanco, Inc. 1 23,500 403,025 - ----------------------------------------------------------------------------- Westamerica Bancorp 21,000 1,104,390 - ----------------------------------------------------------------------------- Wilmington Trust Corp. 1 5,100 134,844 - ----------------------------------------------------------------------------- Wintrust Financial Corp. 1 9,800 233,730 -------------- 17,878,889 - ----------------------------------------------------------------------------- CONSUMER FINANCE--0.6% Advanta Corp., Cl. B 1 39,650 249,399 - ----------------------------------------------------------------------------- AmeriCredit Corp. 1,2 30,000 258,600 - ----------------------------------------------------------------------------- Cash America International, Inc. 1 54,382 1,685,842 - ----------------------------------------------------------------------------- Discover Financial Services 110,800 1,459,236 - ----------------------------------------------------------------------------- EZCORP, Inc., Cl. A 2 58,200 742,050 - ----------------------------------------------------------------------------- World Acceptance Corp. 1,2 29,000 976,430 -------------- 5,371,557 - ----------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--0.4% Asset Acceptance Capital Corp. 1 15,400 188,188
SHARES VALUE - ----------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES Continued Encore Capital Group, Inc. 2 1,200 $ 10,596 - ----------------------------------------------------------------------------- Financial Federal Corp. 1 29,730 652,871 - ----------------------------------------------------------------------------- Interactive Brokers Group, Inc., Cl. A 1,2 1,500 48,195 - ----------------------------------------------------------------------------- Leucadia National Corp. 32,500 1,525,550 - ----------------------------------------------------------------------------- MarketAxess Holdings, Inc. 1,2 12,600 95,256 - ----------------------------------------------------------------------------- PHH Corp. 2 49,900 765,965 - ----------------------------------------------------------------------------- Portfolio Recovery Associates, Inc. 1,2 9,600 360,000 -------------- 3,646,621 - ----------------------------------------------------------------------------- INSURANCE--6.4% Alleghany Corp. 2 1,020 338,691 - ----------------------------------------------------------------------------- Allied World Assurance Holdings Ltd. 34,300 1,358,966 - ----------------------------------------------------------------------------- American Equity Investment Life Holding Co. 1 65,700 535,455 - ----------------------------------------------------------------------------- American Financial Group, Inc. 34,500 922,875 - ----------------------------------------------------------------------------- American National Insurance Co. 300 29,406 - ----------------------------------------------------------------------------- American Physicians Capital, Inc. 1 21,150 1,024,506 - ----------------------------------------------------------------------------- Amerisafe, Inc. 2 33,100 527,614 - ----------------------------------------------------------------------------- AmTrust Financial Services, Inc. 1 72,500 913,500 - ----------------------------------------------------------------------------- Arch Capital Group Ltd. 2 17,100 1,134,072 - ----------------------------------------------------------------------------- Argo Group International Holdings Ltd. 2 7,390 248,008 - ----------------------------------------------------------------------------- Aspen Insurance Holdings Ltd. 129,100 3,055,797 - ----------------------------------------------------------------------------- Assurant, Inc. 37,300 2,460,308 - ----------------------------------------------------------------------------- Assured Guaranty Ltd. 1 18,100 325,619 - ----------------------------------------------------------------------------- Axis Capital Holdings Ltd. 48,300 1,439,823 - ----------------------------------------------------------------------------- Berkley (W.R.) Corp. 56,300 1,360,208 - ----------------------------------------------------------------------------- Brown & Brown, Inc. 33,300 579,087 - ----------------------------------------------------------------------------- Cincinnati Financial Corp. 32,900 835,660 - ----------------------------------------------------------------------------- CNA Financial Corp. 38,800 975,820 - ----------------------------------------------------------------------------- CNA Surety Corp. 2 25,200 318,528 - ----------------------------------------------------------------------------- Conseco, Inc. 2 117,000 1,160,640 - ----------------------------------------------------------------------------- Darwin Professional Underwriters, Inc. 1,2 7,900 243,320 - ----------------------------------------------------------------------------- Delphi Financial Group, Inc., Cl. A 1 46,050 1,065,597 - ----------------------------------------------------------------------------- Donegal Group, Inc., Cl. A 1 1,166 18,504 - ----------------------------------------------------------------------------- eHealth, Inc. 1,2 8,300 146,578 - ----------------------------------------------------------------------------- EMC Insurance Group, Inc. 300 7,224 - ----------------------------------------------------------------------------- Employers Holdings, Inc. 1 21,200 438,840 - ----------------------------------------------------------------------------- Endurance Specialty Holdings Ltd. 52,700 1,622,633 - ----------------------------------------------------------------------------- Erie Indemnity Co., Cl. A 2,900 133,835 - ----------------------------------------------------------------------------- FBL Financial Group, Inc., Cl. A 29,200 580,496 - ----------------------------------------------------------------------------- Fidelity National Title Group, Inc., Cl. A 75,400 950,040
F5 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -----------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- INSURANCE Continued First American Corp. 1 13,300 $ 351,120 - ----------------------------------------------------------------------------- FPIC Insurance Group, Inc. 2 15,200 688,864 - ----------------------------------------------------------------------------- Genworth Financial, Inc., Cl. A 95,500 1,700,855 - ----------------------------------------------------------------------------- Hallmark Financial Services, Inc. 1,2 8,500 82,195 - ----------------------------------------------------------------------------- Hanover Insurance Group, Inc. 16,000 680,000 - ----------------------------------------------------------------------------- Harleysville Group, Inc. 29,200 987,836 - ----------------------------------------------------------------------------- HCC Insurance Holdings, Inc. 38,900 822,346 - ----------------------------------------------------------------------------- Hilb, Rogal & Hamilton Co. 3,800 165,148 - ----------------------------------------------------------------------------- Horace Mann Educators Corp. 3,100 43,462 - ----------------------------------------------------------------------------- Infinity Property & Casualty Corp. 18,900 784,728 - ----------------------------------------------------------------------------- IPC Holdings Ltd. 86,600 2,299,230 - ----------------------------------------------------------------------------- Markel Corp. 2 100 36,700 - ----------------------------------------------------------------------------- Max Capital Group Ltd. 1 100,200 2,137,266 - ----------------------------------------------------------------------------- Montpelier Re Holdings Ltd. 1 7,900 116,525 - ----------------------------------------------------------------------------- National Financial Partners Corp. 27,000 535,140 - ----------------------------------------------------------------------------- National Interstate Corp. 1 10,600 194,828 - ----------------------------------------------------------------------------- National Western Life Insurance Co., Cl. A 1 600 131,100 - ----------------------------------------------------------------------------- Nationwide Financial Services, Inc., Cl. A 1 14,900 715,349 - ----------------------------------------------------------------------------- Navigators Group, Inc. (The) 2 22,300 1,205,315 - ----------------------------------------------------------------------------- Odyssey Re Holdings Corp. 1 27,500 976,250 - ----------------------------------------------------------------------------- OneBeacon Insurance Group Ltd. 1 8,300 145,831 - ----------------------------------------------------------------------------- Partnerre Holdings Ltd. 17,400 1,202,862 - ----------------------------------------------------------------------------- Philadelphia Consolidated Holding Co. 2 35,000 1,188,950 - ----------------------------------------------------------------------------- Phoenix Cos., Inc. (The) 1 60,500 460,405 - ----------------------------------------------------------------------------- Platinum Underwriters Holdings Ltd. 93,200 3,039,252 - ----------------------------------------------------------------------------- Presidential Life Corp. 2,400 37,008 - ----------------------------------------------------------------------------- ProAssurance Corp. 2 49,800 2,395,878 - ----------------------------------------------------------------------------- ProCentury Corp. 12,000 190,080 - ----------------------------------------------------------------------------- Protective Life Corp. 28,900 1,099,645 - ----------------------------------------------------------------------------- Reinsurance Group of America, Inc. 7,500 326,400 - ----------------------------------------------------------------------------- RenaissanceRe Holdings Ltd. 19,500 871,065 - ----------------------------------------------------------------------------- RLI Corp. 1 24,500 1,212,015 - ----------------------------------------------------------------------------- Safeco Corp. 31,100 2,088,676 - ----------------------------------------------------------------------------- Safety Insurance Group, Inc. 7,500 267,375 - ----------------------------------------------------------------------------- Seabright Insurance Holdings, Inc. 1,2 20,900 302,632 - ----------------------------------------------------------------------------- Selective Insurance Group, Inc. 1 54,700 1,026,172 - ----------------------------------------------------------------------------- StanCorp Financial Group, Inc. 25,000 1,174,000 - ----------------------------------------------------------------------------- State Auto Financial Corp. 7,600 181,868 - ----------------------------------------------------------------------------- Torchmark Corp. 4,000 234,600 - ----------------------------------------------------------------------------- Transatlantic Holdings, Inc. 7,200 406,584 - ----------------------------------------------------------------------------- United America Indemnity Ltd., Cl. A 2 32,506 434,605 - ----------------------------------------------------------------------------- Unitrin, Inc. 10,200 281,214 - ----------------------------------------------------------------------------- UnumProvident Corp. 80,000 1,636,000 - -----------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- INSURANCE Continued Wesco Financial Corp. 100 $ 38,200 - ----------------------------------------------------------------------------- White Mountains Insurance Group Ltd. 700 300,300 - ----------------------------------------------------------------------------- Zenith National Insurance Corp. 1 9,300 326,988 -------------- 60,274,512 - ----------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS--2.3% Acadia Realty Trust 2,500 57,875 - ----------------------------------------------------------------------------- Agree Realty Corp. 1 9,400 207,270 - ----------------------------------------------------------------------------- Alexander's, Inc. 1,2 300 93,180 - ----------------------------------------------------------------------------- Alexandria Real Estate Equities, Inc. 1 6,700 652,178 - ----------------------------------------------------------------------------- Arbor Realty Trust, Inc. 1 7,300 65,481 - ----------------------------------------------------------------------------- Ashford Hospitality Trust 1 49,600 229,152 - ----------------------------------------------------------------------------- Associated Estates Realty Corp. 1 5,800 62,118 - ----------------------------------------------------------------------------- BioMed Realty Trust, Inc. 1,500 36,795 - ----------------------------------------------------------------------------- Brandywine Realty Trust 1 19,314 304,389 - ----------------------------------------------------------------------------- Capital Trust, Cl. A 1 1,400 26,894 - ----------------------------------------------------------------------------- CBL & Associates Properties, Inc. 1 19,600 447,664 - ----------------------------------------------------------------------------- Cedar Shopping Centers, Inc. 1 10,100 118,372 - ----------------------------------------------------------------------------- Corporate Office Properties Trust 1 8,400 288,372 - ----------------------------------------------------------------------------- DCT Industrial Trust, Inc. 300 2,484 - ----------------------------------------------------------------------------- DiamondRock Hospitality Co. 44,600 485,694 - ----------------------------------------------------------------------------- Digital Realty Trust, Inc. 1 29,800 1,219,118 - ----------------------------------------------------------------------------- EastGroup Properties, Inc. 10,100 433,290 - ----------------------------------------------------------------------------- Entertainment Properties Trust 1 12,100 598,224 - ----------------------------------------------------------------------------- Equity Lifestyle Properties, Inc. 8,600 378,400 - ----------------------------------------------------------------------------- Equity One, Inc. 1 15,400 316,470 - ----------------------------------------------------------------------------- Extra Space Storage, Inc. 1 12,700 195,072 - ----------------------------------------------------------------------------- FelCor Lodging Trust, Inc. 1 47,000 493,500 - ----------------------------------------------------------------------------- First Industrial Realty Trust, Inc. 1 35,400 972,438 - ----------------------------------------------------------------------------- Glimcher Realty Trust 1 4,900 54,782 - ----------------------------------------------------------------------------- Gramercy Capital Corp. 1 6,200 71,858 - ----------------------------------------------------------------------------- Hersha Hospitality Trust 10,500 79,275 - ----------------------------------------------------------------------------- Highwoods Properties, Inc. 23,100 725,802 - ----------------------------------------------------------------------------- Home Properties of New York, Inc. 1 14,100 677,646 - ----------------------------------------------------------------------------- Inland Real Estate Corp. 1 45,700 658,994 - ----------------------------------------------------------------------------- Kite Realty Group Trust 1 10,100 126,250 - ----------------------------------------------------------------------------- LaSalle Hotel Properties 11,800 296,534 - ----------------------------------------------------------------------------- Lexington Realty Trust 1 24,100 328,483 - ----------------------------------------------------------------------------- LTC Properties, Inc. 1 13,700 350,172 - ----------------------------------------------------------------------------- Medical Properties Trust, Inc. 1 13,100 132,572 - ----------------------------------------------------------------------------- Mid-America Apartment Communities, Inc. 1 10,900 556,336 - ----------------------------------------------------------------------------- National Health Investors, Inc. 1 5,800 165,358 - ----------------------------------------------------------------------------- National Retail Properties, Inc. 1 30,900 645,810 - ----------------------------------------------------------------------------- Nationwide Health Properties, Inc. 1 58,100 1,829,569 - ----------------------------------------------------------------------------- Omega Healthcare Investors, Inc. 1 34,100 567,765
F6 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS Continued Parkway Properties, Inc. 1 9,300 $ 313,689 - ----------------------------------------------------------------------------- Pennsylvania Real Estate Investment Trust 1 24,100 557,674 - ----------------------------------------------------------------------------- PS Business Parks, Inc. 6,900 356,040 - ----------------------------------------------------------------------------- Ramco-Gershenson Properties Trust 7,900 162,266 - ----------------------------------------------------------------------------- Realty Income Corp. 1 42,200 960,472 - ----------------------------------------------------------------------------- Saul Centers, Inc. 4,600 216,154 - ----------------------------------------------------------------------------- Senior Housing Properties Trust 49,200 960,876 - ----------------------------------------------------------------------------- Sovran Self Storage, Inc. 1 5,800 241,048 - ----------------------------------------------------------------------------- Strategic Hotels & Resorts, Inc. 1 26,200 245,494 - ----------------------------------------------------------------------------- Sunstone Hotel Investors, Inc. 24,900 413,340 - ----------------------------------------------------------------------------- Tanger Factory Outlet Centers, Inc. 1 23,900 858,727 - ----------------------------------------------------------------------------- Taubman Centers, Inc. 11,000 535,150 - ----------------------------------------------------------------------------- Washington Real Estate Investment Trust 1 18,100 543,905 -------------- 21,316,471 - ----------------------------------------------------------------------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.1% Jones Lang LaSalle, Inc. 1 7,200 433,368 - ----------------------------------------------------------------------------- Tejon Ranch Co. 1,2 1,870 67,432 -------------- 500,800 THRIFTS & MORTGAGE FINANCE--0.4% Anchor BanCorp Wisconsin, Inc. 1 6,200 43,462 - ----------------------------------------------------------------------------- Bank Mutual Corp. 26,200 263,048 - ----------------------------------------------------------------------------- BankFinancial Corp. 1 700 9,107 - ----------------------------------------------------------------------------- Brookline Bancorp, Inc. 1 20,600 196,730 - ----------------------------------------------------------------------------- Dime Community Bancshares, Inc. 1 35,300 582,803 - ----------------------------------------------------------------------------- Encore Bancshares, Inc. 1,2 8,400 131,460 - ----------------------------------------------------------------------------- Federal Agricultural Mortgage Corp., Non-Vtg. 1 6,500 161,070 - ----------------------------------------------------------------------------- First Place Financial Corp. 1 3,300 31,020 - ----------------------------------------------------------------------------- Flushing Financial Corp. 1 21,600 409,320 - ----------------------------------------------------------------------------- Hudson City Bancorp, Inc. 103,200 1,721,376 - ----------------------------------------------------------------------------- OceanFirst Financial Corp. 1 1,800 32,490 - ----------------------------------------------------------------------------- Provident Financial Services, Inc. 1 9,900 138,699 - ----------------------------------------------------------------------------- Provident New York Bancorp 31,400 347,284 - ----------------------------------------------------------------------------- TierOne Corp. 8,300 38,097 - ----------------------------------------------------------------------------- WSFS Financial Corp. 3,700 165,020 -------------- 4,270,986 - ----------------------------------------------------------------------------- HEALTH CARE--6.8% - ----------------------------------------------------------------------------- BIOTECHNOLOGY--0.7% Allos Therapeutics, Inc. 2 6,300 43,533 - ----------------------------------------------------------------------------- Alnylam Pharmaceuticals, Inc. 1,2 34,900 932,877 - ----------------------------------------------------------------------------- BioMarin Pharmaceutical, Inc. 1,2 9,600 278,208 - ----------------------------------------------------------------------------- Cubist Pharmaceuticals, Inc. 2 57,500 1,026,950 - -----------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- BIOTECHNOLOGY Continued Emergent Biosolutions, Inc. 1,2 22,800 $ 226,404 - ----------------------------------------------------------------------------- Enzon Pharmaceuticals, Inc. 1,2 62,200 442,864 - ----------------------------------------------------------------------------- Martek Biosciences Corp. 1,2 80,919 2,727,779 - ----------------------------------------------------------------------------- Momenta Pharmaceuticals, Inc. 2 8,900 109,470 - ----------------------------------------------------------------------------- Myriad Genetics, Inc. 1,2 2,400 109,248 - ----------------------------------------------------------------------------- Rigel Pharmaceuticals, Inc. 1,2 3,600 81,576 - ----------------------------------------------------------------------------- RXi Pharmaceuticals Corp. 1,2 4,285 34,280 - ----------------------------------------------------------------------------- Savient Pharmaceuticals, Inc. 1,2 13,500 341,550 - ----------------------------------------------------------------------------- United Therapeutics Corp. 2 2,500 244,375 -------------- 6,599,114 - ----------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--1.4% Abaxis, Inc. 1,2 12,700 306,451 - ----------------------------------------------------------------------------- American Medical Systems Holdings, Inc. 1,2 11,200 167,440 - ----------------------------------------------------------------------------- Analogic Corp. 1 34,300 2,163,301 - ----------------------------------------------------------------------------- ConMed Corp. 2 39,000 1,035,450 - ----------------------------------------------------------------------------- CryoLife, Inc. 1,2 25,300 289,432 - ----------------------------------------------------------------------------- Cyberonics, Inc. 2 11,300 245,210 - ----------------------------------------------------------------------------- Datascope Corp. 14,300 672,100 - ----------------------------------------------------------------------------- Edwards Lifesciences Corp. 2 11,200 694,848 - ----------------------------------------------------------------------------- Exactech, Inc. 2 3,800 97,698 - ----------------------------------------------------------------------------- Hill-Rom Holdings, Inc. 1 41,900 1,130,462 - ----------------------------------------------------------------------------- IRIS International, Inc. 1,2 4,000 62,600 - ----------------------------------------------------------------------------- Kensey Nash Corp. 2 16,700 535,235 - ----------------------------------------------------------------------------- Meridian Bioscience, Inc. 1 21,304 573,504 - ----------------------------------------------------------------------------- Merit Medical Systems, Inc. 2 27,400 402,780 - ----------------------------------------------------------------------------- Natus Medical, Inc. 1,2 4,400 92,136 - ----------------------------------------------------------------------------- Neogen Corp. 2 2,300 52,647 - ----------------------------------------------------------------------------- NuVasive, Inc. 1,2 2,400 107,184 - ----------------------------------------------------------------------------- Quidel Corp. 1,2 38,100 629,412 - ----------------------------------------------------------------------------- Sirona Dental Systems, Inc. 1,2 12,300 318,816 - ----------------------------------------------------------------------------- Somanetics Corp. 1,2 4,900 103,880 - ----------------------------------------------------------------------------- SonoSite, Inc. 1,2 6,700 187,667 - ----------------------------------------------------------------------------- Steris Corp. 78,600 2,260,536 - ----------------------------------------------------------------------------- Vital Signs, Inc. 1,700 96,526 - ----------------------------------------------------------------------------- VNUS Medical Technologies, Inc. 2 3,600 72,036 - ----------------------------------------------------------------------------- Zoll Medical Corp. 2 28,500 959,595 -------------- 13,256,946 - ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--2.6% Air Methods Corp. 1,2 500 12,500 - ----------------------------------------------------------------------------- Alliance Imaging, Inc. 2 37,700 326,859 - ----------------------------------------------------------------------------- Amedisys, Inc. 1,2 19,900 1,003,358 - ----------------------------------------------------------------------------- AMERIGROUP Corp. 2 58,500 1,216,800 - ----------------------------------------------------------------------------- AMN Healthcare Services, Inc. 1,2 14,700 248,724
F7 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES Continued AmSurg Corp. 1,2 11,900 $ 289,765 - ----------------------------------------------------------------------------- Apria Healthcare Group, Inc. 1,2 47,800 926,842 - ----------------------------------------------------------------------------- Centene Corp. 1,2 91,700 1,539,643 - ----------------------------------------------------------------------------- Chemed Corp. 1 17,300 633,353 - ----------------------------------------------------------------------------- Chindex International, Inc. 2 11,650 170,906 - ----------------------------------------------------------------------------- CorVel Corp. 2 5,700 193,059 - ----------------------------------------------------------------------------- Cross Country Healthcare, Inc. 2 6,600 95,106 - ----------------------------------------------------------------------------- Emergency Medical Services LP, Cl. A 1,2 10,600 239,878 - ----------------------------------------------------------------------------- Gentiva Health Services, Inc. 1,2 4,100 78,105 - ----------------------------------------------------------------------------- Hanger Orthopedic Group, Inc. 2 26,000 428,740 - ----------------------------------------------------------------------------- Health Net, Inc. 2 29,700 714,582 - ----------------------------------------------------------------------------- HealthExtras, Inc. 2 5,800 174,812 - ----------------------------------------------------------------------------- Healthspring, Inc. 1,2 135,300 2,283,864 - ----------------------------------------------------------------------------- HMS Holdings Corp. 1,2 1,500 32,205 - ----------------------------------------------------------------------------- Kindred Healthcare, Inc. 2 25,700 739,132 - ----------------------------------------------------------------------------- Landauer, Inc. 1 12,200 686,128 - ----------------------------------------------------------------------------- LifePoint Hospitals, Inc. 1,2 87,700 2,481,910 - ----------------------------------------------------------------------------- Lincare Holdings, Inc. 2 96,800 2,749,120 - ----------------------------------------------------------------------------- Magellan Health Services, Inc. 2 4,400 162,932 - ----------------------------------------------------------------------------- Molina Healthcare, Inc. 1,2 37,100 903,014 - ----------------------------------------------------------------------------- Odyssey Healthcare, Inc. 1,2 7,700 74,998 - ----------------------------------------------------------------------------- Owens & Minor, Inc. 1 73,100 3,339,939 - ----------------------------------------------------------------------------- PharMerica Corp. 1,2 25,100 567,009 - ----------------------------------------------------------------------------- Providence Service Corp. 1,2 6,800 143,548 - ----------------------------------------------------------------------------- Psychiatric Solutions, Inc. 1,2 3,000 113,520 - ----------------------------------------------------------------------------- RehabCare Group, Inc. 2 28,900 463,267 - ----------------------------------------------------------------------------- Res-Care, Inc. 1,2 16,800 298,704 - ----------------------------------------------------------------------------- Sun Healthcare Group, Inc. 1,2 13,000 174,070 - ----------------------------------------------------------------------------- Universal American Corp. 1,2 20,000 204,400 - ----------------------------------------------------------------------------- WellCare Health Plans, Inc. 2 7,940 287,031 -------------- 23,997,823 - ----------------------------------------------------------------------------- HEALTH CARE TECHNOLOGY--0.1% Eclipsys Corp. 1,2 7,900 145,044 - ----------------------------------------------------------------------------- HLTH Corp. 2 25,700 290,924 - ----------------------------------------------------------------------------- Phase Forward, Inc. 1,2 27,600 495,972 - ----------------------------------------------------------------------------- Trizetto Group, Inc. 2 6,480 138,542 -------------- 1,070,482 - ----------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--1.0% Albany Molecular Research, Inc. 1,2 26,300 349,001 - ----------------------------------------------------------------------------- Dionex Corp. 2 17,300 1,148,201 - ----------------------------------------------------------------------------- Enzo Biochem, Inc. 2 4,300 48,246 - ----------------------------------------------------------------------------- eResearch Technology, Inc. 2 68,000 1,185,920 - ----------------------------------------------------------------------------- Illumina, Inc. 1,2 7,900 688,169 - -----------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES Contined Invitrogen Corp. 2 13,000 $ 510,380 - ----------------------------------------------------------------------------- Luminex Corp. 1,2 41,400 850,770 - ----------------------------------------------------------------------------- Parexel International Corp. 1,2 58,400 1,536,504 - ----------------------------------------------------------------------------- PerkinElmer, Inc. 12,500 348,125 - ----------------------------------------------------------------------------- Pharmaceutical Product Development, Inc. 9,400 403,260 - ----------------------------------------------------------------------------- Varian, Inc. 2 41,800 2,134,308 -------------- 9,202,884 - ----------------------------------------------------------------------------- PHARMACEUTICALS--1.0% Adolor Corp. 1,2 45,700 250,436 - ----------------------------------------------------------------------------- Alpharma, Inc., Cl. A 1,2 43,800 986,814 - ----------------------------------------------------------------------------- Auxilium Pharmaceuticals, Inc. 1,2 11,500 386,630 - ----------------------------------------------------------------------------- Bentley Pharmaceuticals, Inc. 1,2 3,500 56,525 - ----------------------------------------------------------------------------- Durect Corp. 2 9,000 33,030 - ----------------------------------------------------------------------------- Endo Pharmaceuticals Holdings, Inc. 2 50,500 1,221,595 - ----------------------------------------------------------------------------- Forest Laboratories, Inc. 2 15,090 524,227 - ----------------------------------------------------------------------------- King Pharmaceuticals, Inc. 2 224,400 2,349,468 - ----------------------------------------------------------------------------- MiddleBrook Pharmaceuticals, Inc. 1,2 20,800 70,304 - ----------------------------------------------------------------------------- Pain Therapeutics, Inc. 1,2 16,300 128,770 - ----------------------------------------------------------------------------- Par Pharmaceutical Cos., Inc. 1,2 13,800 223,974 - ----------------------------------------------------------------------------- Pozen, Inc. 1,2 9,500 103,360 - ----------------------------------------------------------------------------- Sepracor, Inc. 2 14,800 294,816 - ----------------------------------------------------------------------------- Valeant Pharmaceuticals International, Inc. 1,2 38,354 656,237 - ----------------------------------------------------------------------------- Vivus, Inc. 1,2 8,400 56,112 - ----------------------------------------------------------------------------- Warner Chilcott Ltd., Cl. A 2 25,100 425,445 - ----------------------------------------------------------------------------- Watson Pharmaceuticals, Inc. 2 40,900 1,111,253 - ----------------------------------------------------------------------------- Xenoport, Inc. 2 13,600 530,808 -------------- 9,409,804 - ----------------------------------------------------------------------------- INDUSTRIALS--20.6% - ----------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.7% Aeroviroment, Inc. 1,2 6,200 168,516 - ----------------------------------------------------------------------------- Argon ST, Inc. 2 6,900 171,120 - ----------------------------------------------------------------------------- Astronics Corp., Cl. B 2 650 9,815 - ----------------------------------------------------------------------------- BE Aerospace, Inc. 2 26,200 610,198 - ----------------------------------------------------------------------------- Ceradyne, Inc. 2 26,400 905,520 - ----------------------------------------------------------------------------- Cubic Corp. 45,200 1,007,056 - ----------------------------------------------------------------------------- Curtiss-Wright Corp. 1 11,200 501,088 - ----------------------------------------------------------------------------- DRS Technologies, Inc. 46,400 3,652,608 - ----------------------------------------------------------------------------- Ducommun, Inc. 1,2 13,400 307,664 - ----------------------------------------------------------------------------- DynCorp International, Inc., Cl. A 2 67,700 1,025,655 - ----------------------------------------------------------------------------- Esterline Technologies Corp. 2 52,600 2,591,076 - ----------------------------------------------------------------------------- HEICO Corp. 1 17,800 579,212 - ----------------------------------------------------------------------------- Stanley, Inc. 1,2 21,700 727,384 - ----------------------------------------------------------------------------- Teledyne Technologies, Inc. 2 27,300 1,331,967
F8 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- AEROSPACE & DEFENSE Continued TransDigm Group, Inc. 1,2 12,000 $ 403,080 - ----------------------------------------------------------------------------- Triumph Group, Inc. 1 41,100 1,935,810 -------------- 15,927,769 - ----------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--0.5% Air Transport Services Group, Inc. 2 12,700 12,700 - ----------------------------------------------------------------------------- Atlas Air Worldwide Holdings, Inc. 2 27,500 1,360,150 - ----------------------------------------------------------------------------- Hub Group, Inc., Cl. A 2 51,000 1,740,630 - ----------------------------------------------------------------------------- Pacer International, Inc. 62,500 1,344,375 -------------- 4,457,855 - ----------------------------------------------------------------------------- AIRLINES--0.2% Allegiant Travel Co. 2 1,100 20,449 - ----------------------------------------------------------------------------- Hawaiian Holdings, Inc. 1,2 88,100 612,295 - ----------------------------------------------------------------------------- Republic Airways Holdings, Inc. 2 44,100 381,906 - ----------------------------------------------------------------------------- SkyWest, Inc. 1 75,400 953,810 ------------- 1,968,460 - ----------------------------------------------------------------------------- BUILDING PRODUCTS--0.7% Aaon, Inc. 11,000 211,860 - ----------------------------------------------------------------------------- American Woodmark Corp. 1 3,000 63,390 - ----------------------------------------------------------------------------- Ameron International Corp. 1 10,200 1,223,796 - ----------------------------------------------------------------------------- Apogee Enterprises, Inc. 1 29,000 468,640 - ----------------------------------------------------------------------------- Gibraltar Industries, Inc. 6,300 100,611 - ----------------------------------------------------------------------------- Insteel Industries, Inc. 1 16,900 309,439 - ----------------------------------------------------------------------------- Lennox International, Inc. 71,200 2,061,952 - ----------------------------------------------------------------------------- NCI Building Systems, Inc. 1,2 35,100 1,289,223 - ----------------------------------------------------------------------------- Quanex Building Products Corp. 1 61,723 917,204 - ----------------------------------------------------------------------------- Universal Forest Products, Inc. 1 4,100 122,836 -------------- 6,768,951 - ----------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--5.2% ABM Industries, Inc. 1 24,300 540,675 - ----------------------------------------------------------------------------- Administaff, Inc. 1 54,000 1,506,060 - ----------------------------------------------------------------------------- Advisory Board Co. (The) 2 1,400 55,062 - ----------------------------------------------------------------------------- American Ecology Corp. 1 29,500 871,135 - ----------------------------------------------------------------------------- American Reprographics Co. 2 11,500 191,475 - ----------------------------------------------------------------------------- AMREP Corp. 1,200 57,108 - ----------------------------------------------------------------------------- Bowne & Co., Inc. 1 44,600 568,650 - ----------------------------------------------------------------------------- Brink's Co. (The) 15,300 1,000,926 - ----------------------------------------------------------------------------- CBIZ, Inc. 1,2 80,100 636,795 - ----------------------------------------------------------------------------- CDI Corp. 1 24,607 626,002 - ----------------------------------------------------------------------------- ChoicePoint, Inc. 2 43,500 2,096,700 - ----------------------------------------------------------------------------- Clean Harbors, Inc. 1,2 31,200 2,217,072 - ----------------------------------------------------------------------------- Comfort Systems USA, Inc. 1 84,400 1,134,336 - ----------------------------------------------------------------------------- COMSYS IT Partners, Inc. 1,2 9,900 90,288 - ----------------------------------------------------------------------------- Consolidated Graphics, Inc. 2 21,400 1,054,378 - -----------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Continued Copart, Inc. 1,2 1,900 $ 81,358 - ----------------------------------------------------------------------------- Cornell Corrections, Inc. 1,2 25,700 619,627 - ----------------------------------------------------------------------------- CRA International, Inc. 1,2 5,800 209,670 - ----------------------------------------------------------------------------- Deluxe Corp. 111,800 1,992,276 - ----------------------------------------------------------------------------- Ennis, Inc. 20,900 327,085 - ----------------------------------------------------------------------------- Exponent, Inc. 2 33,080 1,039,043 - ----------------------------------------------------------------------------- First Advantage Corp., Cl. A 2 6,200 98,270 - ----------------------------------------------------------------------------- FTI Consulting, Inc. 2 2,997 205,175 - ----------------------------------------------------------------------------- G&K Services, Inc., Cl. A 9,300 283,278 - ----------------------------------------------------------------------------- GeoEye, Inc. 1,2 600 10,626 - ----------------------------------------------------------------------------- Hill International, Inc. 1,2 28,900 475,116 - ----------------------------------------------------------------------------- HNI Corp. 1 17,200 303,752 - ----------------------------------------------------------------------------- Hudson Highland Group, Inc. 1,2 25,600 268,032 - ----------------------------------------------------------------------------- ICF International, Inc. 1,2 22,900 380,598 - ----------------------------------------------------------------------------- Ikon Office Solutions, Inc. 90,115 1,016,497 - ----------------------------------------------------------------------------- Interface, Inc., Cl. A 1 93,900 1,176,567 - ----------------------------------------------------------------------------- Kelly Services, Inc., Cl. A 1 20,099 388,514 - ----------------------------------------------------------------------------- Kimball International, Inc., Cl. B 1 20,300 168,084 - ----------------------------------------------------------------------------- Knoll, Inc. 1 56,800 690,120 - ----------------------------------------------------------------------------- Korn-Ferry International 1,2 87,400 1,374,802 - ----------------------------------------------------------------------------- Manpower, Inc. 22,300 1,298,752 - ----------------------------------------------------------------------------- McGrath Rentcorp 5,800 142,622 - ----------------------------------------------------------------------------- Metalico, Inc. 1,2 39,000 683,280 - ----------------------------------------------------------------------------- Miller (Herman), Inc. 1 115,500 2,874,795 - ----------------------------------------------------------------------------- Mine Safety Appliances Co. 1 31,600 1,263,684 - ----------------------------------------------------------------------------- MPS Group, Inc. 2 163,000 1,732,690 - ----------------------------------------------------------------------------- Navigant Consulting, Inc. 2 54,400 1,064,064 - ----------------------------------------------------------------------------- R.R. Donnelley & Sons Co. 49,000 1,454,810 - ----------------------------------------------------------------------------- Resources Connection, Inc. 1 39,200 797,720 - ----------------------------------------------------------------------------- Robert Half International, Inc. 58,300 1,397,451 - ----------------------------------------------------------------------------- Rollins, Inc. 1 61,200 906,984 - ----------------------------------------------------------------------------- Schawk, Inc. 10,400 124,696 - ----------------------------------------------------------------------------- School Specialty, Inc. 1,2 19,100 567,843 - ----------------------------------------------------------------------------- Spherion Corp. 2 39,400 182,028 - ----------------------------------------------------------------------------- Standard Parking Corp. 1,2 5,100 92,820 - ----------------------------------------------------------------------------- Standard Register Co. (The) 1 14,200 133,906 - ----------------------------------------------------------------------------- Steelcase, Inc., Cl. A 118,900 1,192,567 - ----------------------------------------------------------------------------- Sykes Enterprises, Inc. 2 53,900 1,016,554 - ----------------------------------------------------------------------------- Team, Inc. 1,2 17,400 597,168 - ----------------------------------------------------------------------------- TeleTech Holdings, Inc. 2 57,300 1,143,708 - ----------------------------------------------------------------------------- Tetra Tech, Inc. 1,2 7,800 176,436 - ----------------------------------------------------------------------------- TrueBlue, Inc. 1,2 93,900 1,240,419 - ----------------------------------------------------------------------------- United Stationers, Inc. 1,2 47,488 1,754,682 - ----------------------------------------------------------------------------- Viad Corp. 1 50,400 1,299,816 - ----------------------------------------------------------------------------- Volt Information Sciences, Inc. 1,2 850 10,124
F9 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Continued Waste Connections, Inc. 2 20,650 $ 659,355 - ----------------------------------------------------------------------------- Watson Wyatt & Co. Holdings 23,400 1,237,626 -------------- 48,801,752 - ----------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING--1.1% Aecom Technology Corp. 2 35,000 1,138,550 - ----------------------------------------------------------------------------- Baker (Michael) Corp. 1,2 9,700 212,236 - ----------------------------------------------------------------------------- Dycom Industries, Inc. 1,2 30,400 441,408 - ----------------------------------------------------------------------------- EMCOR Group, Inc. 1,2 97,900 2,793,087 - ----------------------------------------------------------------------------- Furmanite Corp. 1,2 4,200 33,516 - ----------------------------------------------------------------------------- Granite Construction, Inc. 1 23,400 737,802 - ----------------------------------------------------------------------------- Insituform Technologies, Inc., Cl. A 1,2 22,600 344,198 - ----------------------------------------------------------------------------- Integrated Electrical Services, Inc. 1,2 11,700 201,240 - ----------------------------------------------------------------------------- KBR, Inc. 41,500 1,448,765 - ----------------------------------------------------------------------------- Layne Christensen Co. 1,2 16,600 726,914 - ----------------------------------------------------------------------------- MasTec, Inc. 1,2 51,600 550,056 - ----------------------------------------------------------------------------- Northwest Pipe Co. 1,2 10,800 602,640 - ----------------------------------------------------------------------------- Perini Corp. 2 37,200 1,229,460 - ----------------------------------------------------------------------------- Pike Electric Corp. 1,2 13,206 219,352 -------------- 10,679,224 - ----------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--2.6% Acuity Brands, Inc. 1 69,100 3,322,328 - ----------------------------------------------------------------------------- AZZ, Inc. 1,2 18,200 726,180 - ----------------------------------------------------------------------------- Belden, Inc. 1 71,100 2,408,868 - ----------------------------------------------------------------------------- Brady Corp., Cl. A 1 27,900 963,387 - ----------------------------------------------------------------------------- Day4 Energy, Inc. 2 82,300 339,789 - ----------------------------------------------------------------------------- Encore Wire Corp. 1 27,900 591,201 - ----------------------------------------------------------------------------- GrafTech International Ltd. 2 156,600 4,201,578 - ----------------------------------------------------------------------------- II-VI, Inc. 1,2 15,900 555,228 - ----------------------------------------------------------------------------- LSI Industries, Inc. 11,500 93,380 - ----------------------------------------------------------------------------- Powell Industries, Inc. 2 17,300 872,093 - ----------------------------------------------------------------------------- Regal-Beloit Corp. 1 53,900 2,277,275 - ----------------------------------------------------------------------------- Smith (A.O.) Corp. 1 35,500 1,165,465 - ----------------------------------------------------------------------------- Superior Essex, Inc. 2 18,500 825,655 - ----------------------------------------------------------------------------- Thomas & Betts Corp. 2 46,900 1,775,165 - ----------------------------------------------------------------------------- Valence Technology, Inc. 1,2 38,000 168,340 - ----------------------------------------------------------------------------- Vicor Corp. 1 12,900 128,742 - ----------------------------------------------------------------------------- Woodward Governor Co. 106,800 3,808,488 -------------- 24,223,162 - ----------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--0.2% Otter Tail Corp. 1 5,500 213,565 - ----------------------------------------------------------------------------- Raven Industries, Inc. 1 12,000 393,360 - ----------------------------------------------------------------------------- Walter Industries, Inc. 14,800 1,609,796 -------------- 2,216,721
SHARES VALUE - ----------------------------------------------------------------------------- MACHINERY--5.4% Actuant Corp., Cl. A 1 83,100 $ 2,605,185 - ----------------------------------------------------------------------------- Altra Holdings, Inc. 2 16,600 279,046 - ----------------------------------------------------------------------------- Ampco-Pittsburgh Corp. 1 19,100 849,568 - ----------------------------------------------------------------------------- Astec Industries, Inc. 1,2 38,680 1,243,175 - ----------------------------------------------------------------------------- Axsys Technologies, Inc. 2 15,200 791,008 - ----------------------------------------------------------------------------- Badger Meter, Inc. 1 27,320 1,380,480 - ----------------------------------------------------------------------------- Barnes Group, Inc. 1 89,200 2,059,628 - ----------------------------------------------------------------------------- Blount International, Inc. 1,2 61,500 714,015 - ----------------------------------------------------------------------------- Cascade Corp. 1 5,846 247,403 - ----------------------------------------------------------------------------- Chart Industries, Inc. 2 43,700 2,125,568 - ----------------------------------------------------------------------------- CIRCOR International, Inc. 1 27,500 1,347,225 - ----------------------------------------------------------------------------- Colfax Corp. 2 22,070 553,736 - ----------------------------------------------------------------------------- Columbus McKinnon Corp. 1,2 34,000 818,720 - ----------------------------------------------------------------------------- Commercial Vehicle Group, Inc. 1,2 3,900 36,465 - ----------------------------------------------------------------------------- Crane Co. 16,100 620,333 - ----------------------------------------------------------------------------- Cummins, Inc. 31,000 2,031,120 - ----------------------------------------------------------------------------- Dover Corp. 5,700 275,709 - ----------------------------------------------------------------------------- EnPro Industries, Inc. 1,2 44,700 1,669,098 - ----------------------------------------------------------------------------- ESCO Technologies, Inc. 1,2 7,900 370,668 - ----------------------------------------------------------------------------- Federal Signal Corp. 1 30,300 363,600 - ----------------------------------------------------------------------------- Gardner Denver, Inc. 2 76,000 4,316,800 - ----------------------------------------------------------------------------- Gorman-Rupp Co. (The) 1 23,943 953,889 - ----------------------------------------------------------------------------- Hurco Cos., Inc. 1,2 6,700 206,963 - ----------------------------------------------------------------------------- IDEX Corp. 31,700 1,167,828 - ----------------------------------------------------------------------------- Ingersoll-Rand Co. Ltd., Cl. A 53,600 2,006,248 - ----------------------------------------------------------------------------- Joy Global, Inc. 2,500 189,575 - ----------------------------------------------------------------------------- Kadant, Inc. 2 30,100 680,260 - ----------------------------------------------------------------------------- Kaydon Corp. 1 7,000 359,870 - ----------------------------------------------------------------------------- L.B. Foster Co., Cl. A 1,2 5,700 189,240 - ----------------------------------------------------------------------------- Lincoln Electric Holdings, Inc. 10,300 810,610 - ----------------------------------------------------------------------------- Lindsay Manufacturing Co. 1 7,400 628,778 - ----------------------------------------------------------------------------- Lydall, Inc. 1,2 4,700 58,985 - ----------------------------------------------------------------------------- McCoy Corp. 3 46,600 211,590 - ----------------------------------------------------------------------------- Mueller Industries, Inc. 75,600 2,434,320 - ----------------------------------------------------------------------------- Navistar International Corp. 2 5,300 348,846 - ----------------------------------------------------------------------------- Nordson Corp. 28,700 2,091,943 - ----------------------------------------------------------------------------- Oshkosh Corp. 1 12,300 254,487 - ----------------------------------------------------------------------------- Pentair, Inc. 22,400 784,448 - ----------------------------------------------------------------------------- RBC Bearings, Inc. 2 11,800 393,176 - ----------------------------------------------------------------------------- Robbins & Myers, Inc. 56,800 2,832,616 - ----------------------------------------------------------------------------- Sun Hydraulics Corp. 1 24,050 776,094 - ----------------------------------------------------------------------------- Tecumseh Products Co., Cl. A 1,2 34,900 1,144,022 - ----------------------------------------------------------------------------- Tennant Co. 1 14,900 448,043 - ----------------------------------------------------------------------------- Timken Co. 29,000 955,260 - ----------------------------------------------------------------------------- Titan International, Inc. 1 14,200 505,804
F10 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- MACHINERY Continued Toro Co. (The) 1 60,700 $ 2,019,489 - ----------------------------------------------------------------------------- Twin Disc, Inc. 1 600 12,558 - ----------------------------------------------------------------------------- Wabtec Corp. 61,600 2,994,992 - ----------------------------------------------------------------------------- Watts Water Technologies, Inc., Cl. A 1 25,300 629,970 -------------- 50,788,454 - ----------------------------------------------------------------------------- MARINE--0.5% Alexander & Baldwin, Inc. 29,000 1,320,950 - ----------------------------------------------------------------------------- American Commercial Lines, Inc. 1,2 35,700 390,201 - ----------------------------------------------------------------------------- Excel Maritime Carriers Ltd. 1 30,400 1,193,200 - ----------------------------------------------------------------------------- Kirby Corp. 2 2,400 115,200 - ----------------------------------------------------------------------------- Safe Bulkers, Inc. 2 57,300 1,079,532 - ----------------------------------------------------------------------------- Star Bulk Carriers Corp. 1 50,500 595,395 -------------- 4,694,478 - ----------------------------------------------------------------------------- ROAD & RAIL--1.1% Amerco 2 1,400 66,752 - ----------------------------------------------------------------------------- Arkansas Best Corp. 1 57,700 2,114,128 - ----------------------------------------------------------------------------- Avis Budget Group, Inc. 2 101,500 849,555 - ----------------------------------------------------------------------------- Celadon Group, Inc. 1,2 1,200 11,988 - ----------------------------------------------------------------------------- Genesee & Wyoming, Inc., Cl. A 2 23,300 792,666 - ----------------------------------------------------------------------------- Heartland Express, Inc. 22,100 329,511 - ----------------------------------------------------------------------------- Hertz Global Holdings, Inc. 2 71,300 684,480 - ----------------------------------------------------------------------------- Marten Transport Ltd. 1,2 8,900 142,133 - ----------------------------------------------------------------------------- Old Dominion Freight Line, Inc. 1,2 16,200 486,324 - ----------------------------------------------------------------------------- Ryder Systems, Inc. 24,500 1,687,560 - ----------------------------------------------------------------------------- Werner Enterprises, Inc. 1 83,500 1,551,430 - ----------------------------------------------------------------------------- YRC Worldwide, Inc. 1,2 91,600 1,362,092 -------------- 10,078,619 - ----------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--1.3% Applied Industrial Technologies, Inc. 1 90,075 2,177,113 - ----------------------------------------------------------------------------- Beacon Roofing Supply, Inc. 1,2 8,400 89,124 - ----------------------------------------------------------------------------- GATX Corp. 54,400 2,411,552 - ----------------------------------------------------------------------------- Houston Wire & Cable Co. 1 22,500 447,750 - ----------------------------------------------------------------------------- Kaman Corp. 1,700 38,692 - ----------------------------------------------------------------------------- MSC Industrial Direct Co., Inc., Cl. A 5,400 238,194 - ----------------------------------------------------------------------------- Rush Enterprises, Inc., Cl. A 2 23,500 282,235 - ----------------------------------------------------------------------------- Textainer Group Holdings Ltd. 1 3,600 70,308 - ----------------------------------------------------------------------------- United Rentals, Inc. 2 135,700 2,661,077 - ----------------------------------------------------------------------------- Watsco, Inc. 1 12,600 526,680 - ----------------------------------------------------------------------------- WESCO International, Inc. 2 76,700 3,071,068 -------------- 12,013,793 - ----------------------------------------------------------------------------- TRANSPORTATION INFRASTRUCTURE--0.1% CAI International, Inc. 2 31,600 549,840
SHARES VALUE - ----------------------------------------------------------------------------- INFORMATION TECHNOLOGY--21.4% - ----------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--2.4% Acme Packet, Inc. 1,2 13,000 $ 100,880 - ----------------------------------------------------------------------------- ADTRAN, Inc. 1 69,000 1,644,960 - ----------------------------------------------------------------------------- Avocent Corp. 2 62,000 1,153,200 - ----------------------------------------------------------------------------- Bel Fuse, Inc., Cl. A 1 4,800 134,400 - ----------------------------------------------------------------------------- Black Box Corp. 10,220 277,882 - ----------------------------------------------------------------------------- Brocade Communications Systems, Inc. 2 257,400 2,120,976 - ----------------------------------------------------------------------------- Comtech Telecommunications Corp. 2 54,100 2,650,900 - ----------------------------------------------------------------------------- EchoStar Holding Corp. 1,2 16,000 499,520 - ----------------------------------------------------------------------------- EMS Technologies, Inc. 2 25,500 556,920 - ----------------------------------------------------------------------------- Emulex Corp. 2 156,300 1,820,895 - ----------------------------------------------------------------------------- Extreme Networks, Inc. 2 127,800 362,952 - ----------------------------------------------------------------------------- Foundry Networks, Inc. 2 114,600 1,354,572 - ----------------------------------------------------------------------------- Harmonic, Inc. 1,2 13,900 132,189 - ----------------------------------------------------------------------------- Harris Corp. 21,600 1,090,584 - ----------------------------------------------------------------------------- Ixia 1,2 39,100 271,745 - ----------------------------------------------------------------------------- JDS Uniphase Corp. 2 52,400 595,264 - ----------------------------------------------------------------------------- ParkerVision, Inc. 1,2 3,800 37,734 - ----------------------------------------------------------------------------- Performance Technologies, Inc. 2 3,200 16,192 - ----------------------------------------------------------------------------- Plantronics, Inc. 1 119,300 2,662,776 - ----------------------------------------------------------------------------- Polycom, Inc. 2 55,500 1,351,980 - ----------------------------------------------------------------------------- Powerwave Technologies, Inc. 1,2 77,200 328,100 - ----------------------------------------------------------------------------- SeaChange International, Inc. 1,2 12,900 92,364 - ----------------------------------------------------------------------------- ShoreTel, Inc. 1,2 14,200 62,764 - ----------------------------------------------------------------------------- Sycamore Networks, Inc. 2 21,100 67,942 - ----------------------------------------------------------------------------- Tekelec, Inc. 1,2 106,100 1,560,731 - ----------------------------------------------------------------------------- Tellabs, Inc. 2 276,400 1,285,260 - ----------------------------------------------------------------------------- UTStarcom, Inc. 1,2 76,900 420,643 - ----------------------------------------------------------------------------- ViaSat, Inc. 2 21,600 436,536 -------------- 23,090,861 - ----------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--1.7% 3PAR, Inc. 1,2 12,200 95,648 - ----------------------------------------------------------------------------- Adaptec, Inc. 2 21,000 67,200 - ----------------------------------------------------------------------------- Electronics for Imaging, Inc. 2 36,800 537,280 - ----------------------------------------------------------------------------- Hypercom Corp. 1,2 2,000 8,800 - ----------------------------------------------------------------------------- Imation Corp. 1 32,100 735,732 - ----------------------------------------------------------------------------- Lexmark International, Inc., Cl. A 2 48,700 1,628,041 - ----------------------------------------------------------------------------- NCR Corp. 2 75,900 1,912,680 - ----------------------------------------------------------------------------- Netezza Corp. 2 21,900 251,412 - ----------------------------------------------------------------------------- QLogic Corp. 2 172,800 2,521,152 - ----------------------------------------------------------------------------- SanDisk Corp. 2 10,100 188,870 - ----------------------------------------------------------------------------- Seagate Technology 102,900 1,968,477 - ----------------------------------------------------------------------------- STEC, Inc. 1,2 71,900 738,413 - ----------------------------------------------------------------------------- Stratasys, Inc. 2 7,900 145,834
F11 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- COMPUTERS & PERIPHERALS Continued Synaptics, Inc. 1,2 57,000 $ 2,150,610 - ----------------------------------------------------------------------------- Western Digital Corp. 2 87,800 3,031,734 - ----------------------------------------------------------------------------- Xyratex Ltd. 2 15,200 253,080 -------------- 16,234,963 - ----------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--3.6% Acacia Research Corp. 1,2 17,200 77,056 - ----------------------------------------------------------------------------- Amphenol Corp., Cl. A 26,700 1,198,296 - ----------------------------------------------------------------------------- Arrow Electronics, Inc. 2 53,800 1,652,736 - ----------------------------------------------------------------------------- Avnet, Inc. 2 43,900 1,197,592 - ----------------------------------------------------------------------------- AVX Corp. 33,700 381,147 - ----------------------------------------------------------------------------- Benchmark Electronics, Inc. 2 105,700 1,727,138 - ----------------------------------------------------------------------------- Checkpoint Systems, Inc. 2 50,800 1,060,704 - ----------------------------------------------------------------------------- Cogent, Inc. 1,2 20,700 235,359 - ----------------------------------------------------------------------------- Cognex Corp. 1 56,600 1,304,630 - ----------------------------------------------------------------------------- Coherent, Inc. 1,2 10,100 301,889 - ----------------------------------------------------------------------------- CPI International, Inc. 1,2 100 1,230 - ----------------------------------------------------------------------------- CTS Corp. 1 55,700 559,785 - ----------------------------------------------------------------------------- DTS, Inc. 1,2 21,900 685,908 - ----------------------------------------------------------------------------- Electro Scientific Industries, Inc. 1,2 19,800 280,566 - ----------------------------------------------------------------------------- Excel Technology, Inc. 2 3,900 87,048 - ----------------------------------------------------------------------------- FARO Technologies, Inc. 2 2,200 55,374 - ----------------------------------------------------------------------------- FLIR Systems, Inc. 1,2 26,100 1,058,877 - ----------------------------------------------------------------------------- Gerber Scientific, Inc. 1,2 1,200 13,656 - ----------------------------------------------------------------------------- Ingram Micro, Inc., Cl. A 2 15,200 269,800 - ----------------------------------------------------------------------------- Insight Enterprises, Inc. 2 40,500 475,065 - ----------------------------------------------------------------------------- IPG Photonics Corp. 1,2 15,700 295,317 - ----------------------------------------------------------------------------- Littlefuse, Inc. 2 19,863 626,678 - ----------------------------------------------------------------------------- Measurement Specialties, Inc. 2 1,100 19,349 - ----------------------------------------------------------------------------- Methode Electronics, Inc. 37,490 391,771 - ----------------------------------------------------------------------------- Molex, Inc. 46,100 1,125,301 - ----------------------------------------------------------------------------- MTS Systems Corp. 15,300 548,964 - ----------------------------------------------------------------------------- Multi-Fineline Electronix, Inc. 1,2 36,834 1,019,197 - ----------------------------------------------------------------------------- NAM TAI Electronics, Inc. 1 16,600 217,128 - ----------------------------------------------------------------------------- National Instruments Corp. 51,300 1,455,381 - ----------------------------------------------------------------------------- Newport Corp. 2 7,100 80,869 - ----------------------------------------------------------------------------- OSI Systems, Inc. 1,2 11,700 250,614 - ----------------------------------------------------------------------------- Park Electrochemical Corp. 18,500 449,735 - ----------------------------------------------------------------------------- PC Connection, Inc. 1,2 7,700 71,687 - ----------------------------------------------------------------------------- Plexus Corp. 1,2 98,090 2,715,131 - ----------------------------------------------------------------------------- Rofin-Sinar Technologies, Inc. 1,2 80,300 2,425,060 - ----------------------------------------------------------------------------- Rogers Corp. 1,2 18,500 695,415 - ----------------------------------------------------------------------------- Sanmina-SCI Corp. 2 169,400 216,832 - ----------------------------------------------------------------------------- ScanSource, Inc. 1,2 15,500 414,780 - ----------------------------------------------------------------------------- SYNNEX Corp. 2 45,300 1,136,577
SHARES VALUE - ----------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Continued Tech Data Corp. 2 64,100 $ 2,172,349 - ----------------------------------------------------------------------------- Technitrol, Inc. 61,000 1,036,390 - ----------------------------------------------------------------------------- Trimble Navigation Ltd. 1,2 34,600 1,235,220 - ----------------------------------------------------------------------------- TTM Technologies, Inc. 1,2 86,200 1,138,702 - ----------------------------------------------------------------------------- Vishay Intertechnology, Inc. 2 156,340 1,386,736 -------------- 33,749,039 - ----------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.5% AsiaInfo Holdings, Inc. 2 66,300 783,666 - ----------------------------------------------------------------------------- Bankrate, Inc. 1,2 9,600 375,072 - ----------------------------------------------------------------------------- CMGI, Inc. 1,2 34,910 370,046 - ----------------------------------------------------------------------------- Digital River, Inc. 1,2 13,900 536,262 - ----------------------------------------------------------------------------- Equinix, Inc. 1,2 4,900 437,178 - ----------------------------------------------------------------------------- Greenfield Online, Inc. 2 28,100 419,252 - ----------------------------------------------------------------------------- Imergent, Inc. 1 13,700 162,208 - ----------------------------------------------------------------------------- Interwoven, Inc. 1,2 49,200 590,892 - ----------------------------------------------------------------------------- j2 Global Communications, Inc. 1,2 110,000 2,530,000 - ----------------------------------------------------------------------------- Marchex, Inc., Cl. B 1 11,300 139,216 - ----------------------------------------------------------------------------- National Information Consortium, Inc. 1 40,300 275,249 - ----------------------------------------------------------------------------- NaviSite, Inc. 2 12,200 46,360 - ----------------------------------------------------------------------------- Open Text Corp. 1,2 68,000 2,182,800 - ----------------------------------------------------------------------------- RealNetworks, Inc. 1,2 34,000 224,400 - ----------------------------------------------------------------------------- S1 Corp. 2 96,600 731,262 - ----------------------------------------------------------------------------- Sohu.com, Inc. 2 18,100 1,274,964 - ----------------------------------------------------------------------------- SonicWALL, Inc. 2 45,700 294,765 - ----------------------------------------------------------------------------- SoundBite Communications, Inc. 2 17,200 59,512 - ----------------------------------------------------------------------------- TheStreet.com, Inc. 1 21,300 138,663 - ----------------------------------------------------------------------------- United Online, Inc. 1 136,400 1,368,092 - ----------------------------------------------------------------------------- ValueClick, Inc. 2 10,200 154,530 - ----------------------------------------------------------------------------- Vignette Corp. 2 20,500 246,000 - ----------------------------------------------------------------------------- Vocus, Inc. 1,2 11,100 357,087 - ----------------------------------------------------------------------------- Zix Corp. 1,2 13,100 36,418 -------------- 13,733,894 - ----------------------------------------------------------------------------- IT SERVICES--2.5% Acxiom Corp. 1 72,200 829,578 - ----------------------------------------------------------------------------- Affiliated Computer Services, Inc., Cl. A 2 25,900 1,385,391 - ----------------------------------------------------------------------------- Broadridge Financial Solutions, Inc. 35,400 745,170 - ----------------------------------------------------------------------------- CACI International, Inc., Cl. A 2 35,770 1,637,193 - ----------------------------------------------------------------------------- CIBER, Inc. 1,2 81,900 508,599 - ----------------------------------------------------------------------------- Computer Sciences Corp. 2 27,200 1,274,048 - ----------------------------------------------------------------------------- Convergys Corp. 2 177,100 2,631,706 - ----------------------------------------------------------------------------- CSG Systems International, Inc. 2 46,300 510,226 - ----------------------------------------------------------------------------- CyberSource Corp. 1,2 90,684 1,517,143
F12 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------- IT SERVICES Continued Electronic Data Systems Corp. 15,200 $ 374,528 - ----------------------------------------------------------------------------- Forrester Research, Inc. 2 13,884 428,738 - ----------------------------------------------------------------------------- Gartner, Inc. 1,2 77,900 1,614,088 - ----------------------------------------------------------------------------- Global Cash Access, Inc. 2 20,700 142,002 - ----------------------------------------------------------------------------- Heartland Payment Systems, Inc. 1 32,200 759,920 - ----------------------------------------------------------------------------- Hewitt Associates, Inc. 2 53,600 2,054,488 - ----------------------------------------------------------------------------- infoGROUP, Inc. 1,800 7,902 - ----------------------------------------------------------------------------- Integral Systems, Inc. 1 9,977 386,110 - ----------------------------------------------------------------------------- ManTech International Corp. 2 58,400 2,810,208 - ----------------------------------------------------------------------------- Maximus, Inc. 1 27,300 950,586 - ----------------------------------------------------------------------------- Metavante Technologies, Inc. 2,300 52,026 - ----------------------------------------------------------------------------- NCI, Inc., Cl. A 1,2 11,000 251,680 - ----------------------------------------------------------------------------- Ness Technologies, Inc. 1,2 200 2,024 - ----------------------------------------------------------------------------- Perot Systems Corp., Cl. A 1,2 56,500 848,065 - ----------------------------------------------------------------------------- RightNow Technologies, Inc. 1,2 22,091 301,984 - ----------------------------------------------------------------------------- SAIC, Inc. 2 8,900 185,209 - ----------------------------------------------------------------------------- Sapient Corp. 1,2 153,000 982,260 - ----------------------------------------------------------------------------- Syntel, Inc. 1 7,500 252,900 - ----------------------------------------------------------------------------- TNS, Inc. 1,2 400 9,584 - ----------------------------------------------------------------------------- Wright Express Corp. 2 11,000 272,800 -------------- 23,726,156 - ----------------------------------------------------------------------------- OFFICE ELECTRONICS--0.1% Zebra Technologies Corp., Cl. A 2 31,100 1,015,104 - ----------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.0% Actel Corp. 2 40,800 687,480 - ----------------------------------------------------------------------------- Advanced Energy Industries, Inc. 1,2 41,300 565,810 - ----------------------------------------------------------------------------- Altera Corp. 69,000 1,428,300 - ----------------------------------------------------------------------------- Amkor Technology, Inc. 1,2 261,600 2,723,256 - ----------------------------------------------------------------------------- Analog Devices, Inc. 38,500 1,223,145 - ----------------------------------------------------------------------------- Atmel Corp. 2 456,600 1,588,968 - ----------------------------------------------------------------------------- ATMI, Inc. 2 36,000 1,005,120 - ----------------------------------------------------------------------------- Brooks Automation, Inc. 2 55,700 460,639 - ----------------------------------------------------------------------------- Cabot Microelectronics Corp. 1,2 58,900 1,952,535 - ----------------------------------------------------------------------------- Cirrus Logic, Inc. 1,2 17,300 96,188 - ----------------------------------------------------------------------------- Cohu, Inc. 1 20,500 300,940 - ----------------------------------------------------------------------------- Entegris, Inc. 2 208,700 1,366,985 - ----------------------------------------------------------------------------- Fairchild Semiconductor International, Inc., Cl. A 2 191,100 2,241,603 - ----------------------------------------------------------------------------- FEI Co. 1,2 48,000 1,093,440 - ----------------------------------------------------------------------------- Integrated Device Technology, Inc. 2 267,600 2,659,944 - ----------------------------------------------------------------------------- Intellon Corp. 2 17,600 58,080 - ----------------------------------------------------------------------------- Intersil Corp., Cl. A 78,500 1,909,120 - ----------------------------------------------------------------------------- IXYS Corp. 2 1,200 14,328 - ----------------------------------------------------------------------------- KLA-Tencor Corp. 45,000 1,831,950 - ----------------------------------------------------------------------------- Lattice Semiconductor Corp. 2 115,900 362,767
SHARES VALUE - ----------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued LSI Corp. 2 193,800 $ 1,189,932 - ----------------------------------------------------------------------------- Marvell Technology Group Ltd. 2 72,900 1,287,414 - ----------------------------------------------------------------------------- Mattson Technology, Inc. 1,2 3,600 17,136 - ----------------------------------------------------------------------------- Micrel, Inc. 1 117,800 1,077,870 - ----------------------------------------------------------------------------- Microtune, Inc. 1,2 16,200 56,052 - ----------------------------------------------------------------------------- MKS Instruments, Inc. 1,2 119,600 2,619,240 - ----------------------------------------------------------------------------- Monolithic Power Systems, Inc. 1,2 60,500 1,308,010 - ----------------------------------------------------------------------------- Netlogic Microsystems, Inc. 1,2 10,200 338,640 - ----------------------------------------------------------------------------- NVIDIA Corp. 2 5,300 99,216 - ----------------------------------------------------------------------------- OmniVision Technologies, Inc. 1,2 8,700 105,183 - ----------------------------------------------------------------------------- Pericom Semiconductor Corp. 2 66,100 980,924 - ----------------------------------------------------------------------------- Semtech Corp. 2 153,300 2,156,931 - ----------------------------------------------------------------------------- Silicon Image, Inc. 1,2 79,800 578,550 - ----------------------------------------------------------------------------- Silicon Laboratories, Inc. 1,2 46,000 1,660,140 - ----------------------------------------------------------------------------- Silicon Storage Technology, Inc. 2 38,600 106,922 - ----------------------------------------------------------------------------- Skyworks Solutions, Inc. 1,2 258,100 2,547,447 - ----------------------------------------------------------------------------- Standard Microsystems Corp. 1,2 31,500 855,225 - ----------------------------------------------------------------------------- Techwell, Inc. 2 1,000 12,320 - ----------------------------------------------------------------------------- Teradyne, Inc. 2 173,900 1,925,073 - ----------------------------------------------------------------------------- TriQuint Semiconductor, Inc. 2 72,800 441,168 - ----------------------------------------------------------------------------- Ultra Clean Holdings, Inc. 1,2 4,300 34,228 - ----------------------------------------------------------------------------- Ultratech, Inc. 1,2 23,800 369,376 - ----------------------------------------------------------------------------- Veeco Instruments, Inc. 1,2 51,500 828,120 - ----------------------------------------------------------------------------- Verigy Ltd. 2 52,900 1,201,359 - ----------------------------------------------------------------------------- Volterra Semiconductor Corp. 1,2 48,300 833,658 - ----------------------------------------------------------------------------- Zoran Corp. 2 38,000 444,600 ------------- 46,645,332 - ----------------------------------------------------------------------------- SOFTWARE--4.6% Activision, Inc. 2 81,600 2,780,112 - ----------------------------------------------------------------------------- Actuate Corp. 2 18,600 72,726 - ----------------------------------------------------------------------------- Advent Software, Inc. 1,2 18,100 653,048 - ----------------------------------------------------------------------------- Amdocs Ltd. 2 33,800 994,396 - ----------------------------------------------------------------------------- Ansoft Corp. 1,2 13,700 498,680 - ----------------------------------------------------------------------------- Ansys, Inc. 1,2 45,300 2,134,536 - ----------------------------------------------------------------------------- ArcSight, Inc. 2 2,100 18,480 - ----------------------------------------------------------------------------- Aspen Technology, Inc. 2 116,200 1,545,460 - ----------------------------------------------------------------------------- Autodesk, Inc. 2 6,700 226,527 - ----------------------------------------------------------------------------- Blackbaud, Inc. 1 27,289 583,985 - ----------------------------------------------------------------------------- BMC Software, Inc. 2 63,400 2,282,400 - ----------------------------------------------------------------------------- CA, Inc. 25,700 593,413 - ----------------------------------------------------------------------------- Cadence Design Systems, Inc. 2 142,000 1,434,200 - ----------------------------------------------------------------------------- Check Point Software Technologies Ltd. 2 58,700 1,389,429 - ----------------------------------------------------------------------------- Commvault Systems, Inc. 1,2 14,900 247,936 - ----------------------------------------------------------------------------- Compuware Corp. 2 255,000 2,432,700
F13 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------------- SOFTWARE Continued Concur Technologies, Inc. 1,2 800 $ 26,584 - ----------------------------------------------------------------------------- Double-Take Software, Inc. 1,2 9,400 129,156 - ----------------------------------------------------------------------------- EPIQ Systems, Inc. 1,2 30,720 436,224 - ----------------------------------------------------------------------------- Fair Isaac Corp. 1 47,100 978,267 - ----------------------------------------------------------------------------- FalconStor Software, Inc. 1,2 23,000 162,840 - ----------------------------------------------------------------------------- Henry (Jack) & Associates, Inc. 1 9,600 207,744 - ----------------------------------------------------------------------------- Informatica Corp. 1,2 106,800 1,606,272 - ----------------------------------------------------------------------------- Interactive Intelligence, Inc. 1,2 14,700 171,108 - ----------------------------------------------------------------------------- Intervoice, Inc. 2 12,200 69,540 - ----------------------------------------------------------------------------- JDA Software Group, Inc. 2 47,600 861,560 - ----------------------------------------------------------------------------- Lawson Software, Inc. 1,2 223,000 1,621,210 - ----------------------------------------------------------------------------- Manhattan Associates, Inc. 1,2 32,300 766,479 - ----------------------------------------------------------------------------- Mentor Graphics Corp. 1,2 59,100 933,780 - ----------------------------------------------------------------------------- MICROS Systems, Inc. 2 10,900 332,341 - ----------------------------------------------------------------------------- MicroStrategy, Inc., Cl. A 2 22,300 1,443,925 - ----------------------------------------------------------------------------- NAVTEQ Corp. 2 6,800 523,600 - ----------------------------------------------------------------------------- Net 1 UEPS Technologies, Inc. 2 65,900 1,601,370 - ----------------------------------------------------------------------------- NetScout Systems, Inc. 2 25,700 274,476 - ----------------------------------------------------------------------------- Parametric Technology Corp. 2 93,600 1,560,312 - ----------------------------------------------------------------------------- Phoenix Technologies Ltd. 1,2 1,800 19,800 - ----------------------------------------------------------------------------- Progress Software Corp. 1,2 40,700 1,040,699 - ----------------------------------------------------------------------------- PROS Holdings, Inc. 2 7,100 79,733 - ----------------------------------------------------------------------------- Quest Software, Inc. 1,2 117,100 1,734,251 - ----------------------------------------------------------------------------- Radiant Systems, Inc. 1,2 37,300 400,229 - ----------------------------------------------------------------------------- Salesforce.com, Inc. 2 4,500 307,035 - ----------------------------------------------------------------------------- SPSS, Inc. 2 20,300 738,311 - ----------------------------------------------------------------------------- Sybase, Inc. 2 54,300 1,597,506 - ----------------------------------------------------------------------------- Taleo Corp., Cl. A 2 27,800 544,602 - ----------------------------------------------------------------------------- The9 Ltd., ADR 1,2 2,600 58,708 - ----------------------------------------------------------------------------- TIBCO Software, Inc. 1,2 345,400 2,642,310 - ----------------------------------------------------------------------------- Tyler Technologies, Inc. 2 45,000 610,650 - ----------------------------------------------------------------------------- Ultimate Software Group, Inc. (The) 1,2 16,600 591,458 - ----------------------------------------------------------------------------- Wind River Systems, Inc. 1,2 83,800 912,582 -------------- 42,872,690 - ----------------------------------------------------------------------------- MATERIALS--7.9% - ----------------------------------------------------------------------------- CHEMICALS--4.2% Arch Chemicals, Inc. 1 45,000 1,491,750 - ----------------------------------------------------------------------------- Balchem Corp. 2,200 50,886 - ----------------------------------------------------------------------------- Calgon Carbon Corp. 1,2 77,100 1,191,966 - ----------------------------------------------------------------------------- Celanese Corp., Series A 4,400 200,904 - ----------------------------------------------------------------------------- CF Industries Holdings, Inc. 25,800 3,942,240 - ----------------------------------------------------------------------------- Chemtura Corp. 1 170,300 994,552 - ----------------------------------------------------------------------------- Cytec Industries, Inc. 10,400 567,424 - ----------------------------------------------------------------------------- Ferro Corp. 1 45,000 844,200 - ----------------------------------------------------------------------------- Fuller (H.B.) Co. 61,500 1,380,060
SHARES VALUE - ----------------------------------------------------------------------------- CHEMICALS Continued GenTek, Inc. 2 2,300 $ 61,847 - ----------------------------------------------------------------------------- Hercules, Inc. 162,400 2,749,432 - ----------------------------------------------------------------------------- ICO, Inc. 1,2 33,900 204,078 - ----------------------------------------------------------------------------- Innophos Holdings, Inc. 1 30,000 958,500 - ----------------------------------------------------------------------------- Innospec, Inc. 27,500 517,550 - ----------------------------------------------------------------------------- Koppers Holdings, Inc. 1 46,100 1,930,207 - ----------------------------------------------------------------------------- Landec Corp. 1,2 21,500 139,105 - ----------------------------------------------------------------------------- LSB Industries, Inc. 1,2 2,100 41,580 - ----------------------------------------------------------------------------- Minerals Technologies, Inc. 36,500 2,321,035 - ----------------------------------------------------------------------------- Nalco Holding Co. 40,000 846,000 - ----------------------------------------------------------------------------- NewMarket Corp. 34,200 2,265,066 - ----------------------------------------------------------------------------- NOVA Chemicals Corp. 55,300 1,364,251 - ----------------------------------------------------------------------------- Olin Corp. 115,700 3,029,026 - ----------------------------------------------------------------------------- OM Group, Inc. 1,2 53,700 1,760,823 - ----------------------------------------------------------------------------- Penford Corp. 1 1,600 23,808 - ----------------------------------------------------------------------------- PolyOne Corp. 2 72,200 503,234 - ----------------------------------------------------------------------------- Quaker Chemical Corp. 1 8,200 218,612 - ----------------------------------------------------------------------------- Rockwood Holdings, Inc. 2 1,200 41,760 - ----------------------------------------------------------------------------- RPM International, Inc. 38,100 784,860 - ----------------------------------------------------------------------------- Schulman (A.), Inc. 27,600 635,628 - ----------------------------------------------------------------------------- Scotts Miracle-Gro Co. (The), Cl. A 13,600 238,952 - ----------------------------------------------------------------------------- Sensient Technologies Corp. 1 64,500 1,816,320 - ----------------------------------------------------------------------------- ShengdaTech, Inc. 1,2 15,700 155,901 - ----------------------------------------------------------------------------- Stepan Co. 1 10,100 460,762 - ----------------------------------------------------------------------------- Terra Industries, Inc. 60,400 2,980,740 - ----------------------------------------------------------------------------- Valhi, Inc. 2,500 68,125 - ----------------------------------------------------------------------------- Valspar Corp. (The) 1 79,500 1,503,345 - ----------------------------------------------------------------------------- Westlake Chemical Corp. 1 35,300 524,558 - ----------------------------------------------------------------------------- Zep, Inc. 1 33,400 496,992 -------------- 39,306,079 - ----------------------------------------------------------------------------- CONTAINERS & PACKAGING--1.0% AptarGroup, Inc. 15,700 658,615 - ----------------------------------------------------------------------------- Crown Holdings, Inc. 2 47,900 1,244,921 - ----------------------------------------------------------------------------- Greif, Inc., Cl. A 1 24,200 1,549,526 - ----------------------------------------------------------------------------- Myers Industries, Inc. 19,500 158,925 - ----------------------------------------------------------------------------- Owens-Illinois, Inc. 2 31,000 1,292,390 - ----------------------------------------------------------------------------- Rock-Tenn Co., Cl. A 1 92,400 2,771,076 - ----------------------------------------------------------------------------- Sealed Air Corp. 51,100 971,411 - ----------------------------------------------------------------------------- Silgan Holdings, Inc. 3,800 192,812 - ----------------------------------------------------------------------------- Sonoco Products Co. 27,400 848,030 -------------- 9,687,706 - ----------------------------------------------------------------------------- METALS & MINING--2.5% - ----------------------------------------------------------------------------- A. M. Castle & Co. 17,700 506,397 - ----------------------------------------------------------------------------- AK Steel Holding Corp. 30,300 2,090,700
F14 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SHARES VALUE - ----------------------------------------------------------------------------------------- METALS & MINING Continued AMCOL International Corp. 1 5,800 $ 165,068 - ----------------------------------------------------------------------------------------- Amerigo Resources Ltd. 118,700 179,266 - ----------------------------------------------------------------------------------------- Century Aluminum Co. 1,2 19,400 1,289,906 - ----------------------------------------------------------------------------------------- Compass Minerals International, Inc. 1 29,200 2,352,352 - ----------------------------------------------------------------------------------------- Esmark, Inc. 1,2 1,400 26,768 - ----------------------------------------------------------------------------------------- Farallon Resources Ltd. 2 156,700 119,865 - ----------------------------------------------------------------------------------------- Hecla Mining Co. 1,2 282,200 2,613,172 - ----------------------------------------------------------------------------------------- Kaiser Aluminum Corp. 1 9,700 519,241 - ----------------------------------------------------------------------------------------- Olympic Steel, Inc. 1 11,600 880,672 - ----------------------------------------------------------------------------------------- Redcorp Ventures Ltd. 2,3 666,400 127,437 - ----------------------------------------------------------------------------------------- Reliance Steel & Aluminum Co. 26,700 2,058,303 - ----------------------------------------------------------------------------------------- Schnitzer Steel Industries, Inc. 35,200 4,033,920 - ----------------------------------------------------------------------------------------- Sims Group Ltd., Sponsored ADR 1 98,425 3,927,158 - ----------------------------------------------------------------------------------------- Universal Stainless & Alloy Products, Inc. 1,2 1,400 51,856 - ----------------------------------------------------------------------------------------- Worthington Industries, Inc. 1 141,100 2,892,550 - ----------------------------------------------------------------------------------------- Yamana Gold, Inc. 2,011 33,448 ---------------- 23,868,079 - ----------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.2% Buckeye Technologies, Inc. 1,2 21,300 180,198 - ----------------------------------------------------------------------------------------- Deltic Timber Corp. 4,700 251,497 - ----------------------------------------------------------------------------------------- Glatfelter 1 48,200 651,182 - ----------------------------------------------------------------------------------------- Mercer International, Inc. 1,2 4,900 36,652 - ----------------------------------------------------------------------------------------- Schweitzer-Mauduit International, Inc. 1 8,700 146,595 - ----------------------------------------------------------------------------------------- Wausau Paper Corp. 1 17,000 131,070 -------------- 1,397,194 - ----------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--1.8% - ----------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--1.2% Alaska Communications Systems Group, Inc. 1 31,000 370,140 - ----------------------------------------------------------------------------------------- Atlantic Tele-Network, Inc. 1 16,200 445,662 - ----------------------------------------------------------------------------------------- Cincinnati Bell, Inc. 2 443,900 1,766,722 - ----------------------------------------------------------------------------------------- Embarq Corp. 33,800 1,597,726 - ----------------------------------------------------------------------------------------- Iowa Telecommunications Services, Inc. 1 36,700 646,287 - ----------------------------------------------------------------------------------------- NTELOS Holdings Corp. 1 82,000 2,080,340 - ----------------------------------------------------------------------------------------- Premiere Global Services, Inc. 2 181,400 2,644,812 - ----------------------------------------------------------------------------------------- Windstream Corp. 112,100 1,383,314 -------------- 10,935,003 - ----------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.6% Centennial Communications Corp. 2 133,100 930,369 - ----------------------------------------------------------------------------------------- iPCS, Inc. 1,2 6,500 192,595 - ----------------------------------------------------------------------------------------- Rural Cellular Corp., Cl. A 1,2 5,700 253,707 - ----------------------------------------------------------------------------------------- Syniverse Holdings, Inc. 2 141,500 2,292,300
SHARES VALUE - ----------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES Continued Telephone & Data Systems, Inc. 40,300 $ 1,904,981 - ----------------------------------------------------------------------------------------- United States Cellular Corp. 2 7,800 441,090 ---------------- 6,015,042 - ----------------------------------------------------------------------------------------- UTILITIES--1.6% - ----------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.2% DPL, Inc. 1 17,600 464,288 - ----------------------------------------------------------------------------------------- El Paso Electric Co. 2 24,000 475,200 - ----------------------------------------------------------------------------------------- Hawaiian Electric Industries, Inc. 1 12,700 314,071 - ----------------------------------------------------------------------------------------- UIL Holdings Corp. 1 12,100 355,861 - ----------------------------------------------------------------------------------------- UniSource Energy Corp. 17,700 548,877 ---------------- 2,158,297 - ----------------------------------------------------------------------------------------- ENERGY TRADERS--0.3% Canadian Hydro Developers, Inc. 2 14,000 73,453 - ----------------------------------------------------------------------------------------- Mirant Corp. 2 53,400 2,090,610 - ----------------------------------------------------------------------------------------- Reliant Energy, Inc. 2 57,900 1,231,533 ---------------- 3,395,596 - ----------------------------------------------------------------------------------------- GAS UTILITIES--0.8% Laclede Group, Inc. (The) 1 30,300 1,223,211 - ----------------------------------------------------------------------------------------- New Jersey Resources Corp. 1 8,600 280,790 - ----------------------------------------------------------------------------------------- Northwest Natural Gas Co. 1 38,200 1,767,132 - ----------------------------------------------------------------------------------------- Piedmont Natural Gas Co., Inc. 1 15,800 413,328 - ----------------------------------------------------------------------------------------- South Jersey Industries, Inc. 1,800 67,248 - ----------------------------------------------------------------------------------------- Southwest Gas Corp. 7,700 228,921 - ----------------------------------------------------------------------------------------- WGL Holdings, Inc. 1 91,600 3,182,184 ---------------- 7,162,814 - ----------------------------------------------------------------------------------------- MULTI-UTILITIES--0.2% Alliant Energy Corp. 5,900 202,134 - ----------------------------------------------------------------------------------------- Avista Corp. 44,400 952,824 - ----------------------------------------------------------------------------------------- Integrys Energy Group, Inc. 15,200 772,607 ---------------- 1,927,565 - ----------------------------------------------------------------------------------------- WATER UTILITIES--0.1% Cascal NV 2 50,800 624,840 - ----------------------------------------------------------------------------------------- SJW Corp. 1 11,100 293,040 ---------------- 917,880 ---------------- Total Common Stocks (Cost $ 931,172,919) 929,890,532
UNITS - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - ----------------------------------------------------------------------------------------- Redcorp Ventures Ltd. Wts., Strike Price 0.65 CAD, Exp. 7/5/09 2 (Cost $0) 333,200 8,169
F15 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
SHARES VALUE - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- INVESTMENT COMPANIES--0.2% - ------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 2.69% 5,6 (Cost $1,811,522) 1,811,522 $ 1,811,522 - ------------------------------------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $932,984,441) 931,710,223
PRINCIPAL AMOUNT - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--24.9% 7 - ------------------------------------------------------------------------------------------------------------- ASSET-BACKED FLOATING NOTE--0.1% GSAA Home Equity Trust, Series 2005-15, Cl. 2A1, 2.57%, 7/25/08 $ 666,648 659,479 - ------------------------------------------------------------------------------------------------------------- Specialty Underwriting & Residential Finance Trust, Series 2006 BC1, Cl. A2A, 2.56%, 7/25/08 7,452 7,452 ----------- 666,931 - ------------------------------------------------------------------------------------------------------------- BANK FLOATING RATE NOTE--0.6% Wachovia Bank NA, 2.11%, 7/1/08 6,000,000 5,950,128 - ------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--18.2% 8 Repurchase agreement (Principal Amount/Value $170,271,946, with a maturity value of $170,284,716) with Barclays Capital, 2.70%, dated 6/30/08, to be repurchased at $170,284,716 on 7/1/08, collateralized by various securities, 0%-7.325%, 12/15/10-11/20/56, with a value of $178,477,385 170,271,946 170,271,946
PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------- MEDIUM-TERM FLOATING NOTE--6.0% American General Finance Corp., 2.71%, 7/9/08 $ 6,500,913 $ 6,401,666 - ------------------------------------------------------------------------------------------------------------- American Honda Finance Corp., 2.69%, 9/9/08 6,502,330 6,490,945 - ------------------------------------------------------------------------------------------------------------- ANZ National (Int'l) Ltd., 2.11%, 7/1/08 7,998,429 7,991,264 - ------------------------------------------------------------------------------------------------------------- Beta Finance, Inc., 2.13%, 7/1/08 4,998,660 4,938,175 - ------------------------------------------------------------------------------------------------------------- CAM US Finance SA Unipersonal, 2.92%, 8/1/08 6,000,000 5,989,920 - ------------------------------------------------------------------------------------------------------------- CC USA, Inc., 2.13%, 7/1/08 4,498,792 4,447,750 - ------------------------------------------------------------------------------------------------------------- HSBC Finance Corp., 2.47%, 7/7/08 2,000,000 1,998,954 - ------------------------------------------------------------------------------------------------------------- MBIA Global Funding LLC, 2.12%, 7/1/08 4,000,000 3,485,536 - ------------------------------------------------------------------------------------------------------------- Metropolitan Life Global Funding, 2.48%, 7/22/08 7,250,000 7,248,398 - ------------------------------------------------------------------------------------------------------------- Nationwide Global Fund I, 2.78%, 9/15/08 7,002,352 6,999,762 ---------------- 55,992,370 ---------------- Total Investments Purchased with Cash Collateral from Securities Loaned (Cost $233,697,427) 232,881,375 - ------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $1,166,681,868) 124.2% 1,164,591,598 - ------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (24.2) (226,608,699) -------------------------------- NET ASSETS 100.0% $ 937,982,899 ================================
FOOTNOTES TO STATEMENT OF INVESTMENTS STRIKE PRICE IS SHOWN IN U.S. DOLLARS, EXCEPT FOR THOSE DENOTED IN THE FOLLOWING CURRENCY: CAD Canadian Dollar 1. Partial or fully-loaned security. See Note 7 of accompanying Notes. 2. Non-income producing security. 3. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $1,136,695 or 0.12% of the Fund's net assets as of June 30, 2008. 4. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of June 30, 2008 was $60,786, which represents 0.01% of the Fund's net assets, all of which is considered restricted. See Note 6 of accompanying Notes. Information concerning restricted securities is as follows:
ACQUISITION UNREALIZED SECURITY DATE COST VALUE APPRECIATION - ------------------------------------------------------------------------------------------------------------- Tusk Energy Corp. 11/15/04 $ 38,148 $ 60,786 $ 22,638
5. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES DECEMBER 31, 2007 ADDITIONS REDUCTIONS JUNE 30, 2008 - -------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E 10,327,619 165,795,548 174,311,645 1,811,522
DIVIDEND VALUE INCOME - -------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E $ 1,811,522 $ 163,646
F16 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA 6. Rate shown is the 7-day yield as of June 30, 2008. 7. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 7 of accompanying Notes. 8. The Fund may have elements of risk due to concentrated investments. Such concentrations may subject the Fund to additional risks. - -------------------------------------------------------------------------------- VALUATION INPUTS - -------------------------------------------------------------------------------- Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1 - quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2 - inputs other than quoted prices that are observable for the asset (such as quoted prices for similar assets and market-corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3 - unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The market value of the Fund's investments was determined based on the following inputs as of June 30, 2008:
INVESTMENTS IN OTHER FINANCIAL SECURITIES INSTRUMENTS * -------------------------------------------------------------------------------------------- Level 1--Quoted Prices $ 931,710,223 $ -- Level 2--Other Significant Observable Inputs 232,881,375 -- Level 3--Significant Unobservable Inputs -- -- ------------------------------------ Total $ 1,164,591,598 $ -- ====================================
* Other financial instruments include options written, currency contracts, futures, forwards and swap contracts. Currency contracts and forwards are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options and swaps are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F17 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2008 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ ASSETS - ------------------------------------------------------------------------------------------------------------ Investments, at value (including cost and market value of $170,271,946 in repurchase agreements)--see accompanying statement of investments: Unaffiliated companies (cost $1,164,870,346) $ 1,162,780,076 Affiliated companies (cost $1,811,522) 1,811,522 --------------------- 1,164,591,598 - ------------------------------------------------------------------------------------------------------------ Cash 271,234 - ------------------------------------------------------------------------------------------------------------ Receivables and other assets: Investments sold 27,185,506 Shares of beneficial interest sold 1,698,648 Dividends 632,037 Other 141,510 --------------------- Total assets 1,194,520,533 - ------------------------------------------------------------------------------------------------------------ LIABILITIES - ------------------------------------------------------------------------------------------------------------ Return of collateral for securities loaned 233,697,522 - ------------------------------------------------------------------------------------------------------------ Payables and other liabilities: Investments purchased 21,157,474 Shares of beneficial interest redeemed 1,097,225 Distribution and service plan fees 549,817 Trustees' compensation 8,177 Transfer and shareholder servicing agent fees 1,772 Other 25,647 --------------------- Total liabilities 256,537,634 - ------------------------------------------------------------------------------------------------------------ NET ASSETS $ 937,982,899 ===================== - ------------------------------------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------------------------------------ Par value of shares of beneficial interest $ 60,714 - ------------------------------------------------------------------------------------------------------------ Additional paid-in capital 1,016,842,313 - ------------------------------------------------------------------------------------------------------------ Accumulated net investment income 1,133,916 - ------------------------------------------------------------------------------------------------------------ Accumulated net realized loss on investments and foreign currency transactions (77,963,774) - ------------------------------------------------------------------------------------------------------------ Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies (2,090,270) --------------------- NET ASSETS $ 937,982,899 ===================== - ------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------------------------------------ Non-Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $87,162,840 and 5,595,975 shares of beneficial interest outstanding) $ 15.58 - ------------------------------------------------------------------------------------------------------------ Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $850,820,059 and 55,117,834 shares of beneficial interest outstanding) $ 15.44
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F18 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2008 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME - ------------------------------------------------------------------------------------------------------------ Dividends: Unaffiliated companies (net of foreign withholding taxes of $3,414) $ 4,404,559 Affiliated companies 163,646 - ------------------------------------------------------------------------------------------------------------ Interest 6,089 - ------------------------------------------------------------------------------------------------------------ Portfolio lending fees 980,947 --------------------- Total investment income 5,555,241 - ------------------------------------------------------------------------------------------------------------ EXPENSES - ------------------------------------------------------------------------------------------------------------ Management fees 3,232,241 - ------------------------------------------------------------------------------------------------------------ Distribution and service plan fees--Service shares 1,062,055 - ------------------------------------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees: Non-Service shares 4,984 Service shares 4,858 - ------------------------------------------------------------------------------------------------------------ Shareholder communications: Non-Service shares 2,078 Service shares 19,877 - ------------------------------------------------------------------------------------------------------------ Trustees' compensation 10,671 - ------------------------------------------------------------------------------------------------------------ Custodian fees and expenses 2,661 - ------------------------------------------------------------------------------------------------------------ Administration service fees 750 - ------------------------------------------------------------------------------------------------------------ Other 36,490 --------------------- Total expenses 4,376,665 Less reduction to custodian expenses (1,682) Less waivers and reimbursements of expenses (4,406) --------------------- Net expenses 4,370,577 - ------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME 1,184,664 - ------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) - ------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on: Investments from unaffiliated companies (74,936,539) Foreign currency transactions 18,352 --------------------- Net realized loss (74,918,187) - ------------------------------------------------------------------------------------------------------------ Net change in unrealized depreciation on: Investments (17,232,835) Translation of assets and liabilities denominated in foreign currencies (110,743) --------------------- Net change in unrealized depreciation (17,343,578) - ------------------------------------------------------------------------------------------------------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (91,077,101) =====================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F19 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED JUNE 30, 2008 DECEMBER 31, (UNAUDITED) 2007 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ OPERATIONS - ------------------------------------------------------------------------------------------------------------ Net investment income $ 1,184,664 $ 2,253,546 - ------------------------------------------------------------------------------------------------------------ Net realized gain (loss) (74,918,187) 50,386,224 - ------------------------------------------------------------------------------------------------------------ Net change in unrealized appreciation (depreciation) (17,343,578) (75,276,464) ------------------------------------ Net decrease in net assets resulting from operations (91,077,101) (22,636,694) - ------------------------------------------------------------------------------------------------------------ DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------------------ Dividends from net investment income: Non-Service shares (406,564) (284,891) Service shares (2,093,583) (1,096,034) ------------------------------------ (2,500,147) (1,380,925) - ------------------------------------------------------------------------------------------------------------ Distributions from net realized gain: Non-Service shares (4,514,393) (3,038,041) Service shares (43,539,151) (23,704,364) ------------------------------------ (48,053,544) (26,742,405) - ------------------------------------------------------------------------------------------------------------ BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------------------ Net increase in net assets resulting from beneficial interest transactions: Non-Service shares 6,936,057 17,695,373 Service shares 157,096,718 230,810,116 ------------------------------------ 164,032,775 248,505,489 - ------------------------------------------------------------------------------------------------------------ NET ASSETS - ------------------------------------------------------------------------------------------------------------ Total increase 22,401,983 197,745,465 - ------------------------------------------------------------------------------------------------------------ Beginning of period 915,580,916 717,835,451 ------------------------------------ End of period (including accumulated net investment income of $1,133,916 and $2,449,399, respectively) $ 937,982,899 $ 915,580,916 ====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F20 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30,2008 YEAR ENDED DECEMBER 31, NON-SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 18.20 $ 19.15 $17.18 $ 16.05 $ 13.44 $ 9.31 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .04 1 .09 1 .08 1 .04 1 .01 1 (.03) Net realized and unrealized gain (loss) (1.72) (.30) 2.46 1.51 2.60 4.16 ---------------------------------------------------------------------------------- Total from investment operations (1.68) (.21) 2.54 1.55 2.61 4.13 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.08) (.06) (.03) -- -- -- Distributions from net realized gain (.86) (.68) (.54) (.42) -- -- ---------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.94) (.74) (.57) (.42) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 15.58 $ 18.20 $19.15 $ 17.18 $ 16.05 $ 13.44 ================================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 (9.05)% (1.21)% 15.00% 9.92% 19.42% 44.36% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 87,163 $93,939 $81,405 $ 44,820 $ 38,636 $ 27,551 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 88,982 $94,815 $62,659 $ 39,708 $ 30,871 $ 20,271 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) 0.46% 0.48% 0.46% 0.23% 0.06% (0.30)% Total expenses 0.72% 4,5,6 0.73% 4,5,6 0.77% 4,5 0.81% 6 0.83% 6 1.01% 6 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 68% 115% 110% 110% 147% 130%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods less than one full year. 4. Total Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.72% Year Ended December 31, 2007 0.73% Year Ended December 31, 2006 0.77%
5. Waiver or reimbursement of indirect management fees less than 0.005%. 6. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F21 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30,2008 YEAR ENDED DECEMBER 31, SERVICE SHARES (UNAUDITED) 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 18.03 $ 18.98 $ 17.06 $ 15.97 $ 13.40 $ 9.29 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .02 1 .05 1 .04 1 -- 1,2 (.02) 1 (.02) Net realized and unrealized gain (loss) (1.71) (.29) 2.42 1.51 2.59 4.13 -------------------------------------------------------------------------------------------- Total from investment operations (1.69) (.24) 2.46 1.51 2.57 4.11 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.04) (.03) -- 2 -- -- -- Distributions from net realized gain (.86) (.68) (.54) (.42) -- -- -------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.90) (.71) (.54) (.42) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 15.44 $ 18.03 $ 18.98 $ 17.06 $ 15.97 $ 13.40 ============================================================================================ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 (9.18)% (1.39)% 14.66% 9.71% 19.18% 44.24% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 850,820 $ 821,642 $ 636,430 $ 314,868 $ 173,612 $ 62,660 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 854,484 $ 766,102 $ 479,456 $ 221,324 $ 112,279 $ 25,018 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income (loss) 0.23% 0.23% 0.23% 0.02% (0.14)% (0.43)% Total expenses 0.96% 5,6,7 0.97% 5,6,7 1.00% 5,6 1.04% 7 1.06% 7 1.23% 7 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 68% 115% 110% 110% 147% 130%
1. Per share amounts calculated based on the average shares outstanding during the period 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended June 30, 2008 0.96% Year Ended December 31, 2007 0.97% Year Ended December 31, 2006 1.00%
6. Waiver or reimbursement of indirect management fees less than 0.005%. 7. Reduction to custodian expenses less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. F22 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Main Street Small Cap Fund/VA (the "Fund") is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation. The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Effective for fiscal periods beginning after November 15, 2007, FASB Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS, establishes a hierarchy for measuring fair value of assets and liabilities. As required by the standard, each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as "Level 1", inputs other than quoted prices for an asset that are observable are classified as "Level 2" and unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3". The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. These securities are typically classified within Level 1 or 2; however, they may be designated as Level 3 if the dealer or portfolio pricing service values a security through an internal model with significant unobservable market data inputs. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. These securities are typically designated as Level 2. F23 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued In the absence of a readily available quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Fair valued securities may be classified as "Level 3" if the valuation primarily reflects the Manager's own assumptions about the inputs that market participants would use in valuing such securities. There have been no significant changes to the fair valuation methodologies during the period. - -------------------------------------------------------------------------------- CONCENTRATION OF RISKS. The Fund from time to time may have elements of concentration risk due to the value of certain securities held compared to the overall net investments value of the Fund. Such concentrations may subject the Fund to additional risks. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the collateral is required to be sufficient to cover payments of interest and F24 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA principal. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF-BALANCE SHEET MARKET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. During the fiscal year ended December 31, 2007, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of December 31, 2007, the Fund had available for federal income tax purposes post-October foreign currency losses of $1,265 and post-October passive foreign investment company losses of $20,672. As of June 30, 2008, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $74,940,124 expiring by 2016. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2008, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2008 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 1,173,596,497 ================ Gross unrealized appreciation $ 97,466,173 Gross unrealized depreciation (106,471,072) ---------------- Net unrealized depreciation $ (9,004,899) ================
- -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a F25 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 828,897 $ 13,718,116 1,931,787 $ 37,725,561 Dividends and/or distributions reinvested 326,974 4,920,957 177,034 3,322,932 Redeemed (720,158) (11,703,016) (1,200,537) (23,353,120) --------------------------------------------------------------- Net increase 435,713 $ 6,936,057 908,284 $ 17,695,373 ===============================================================
F26 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED DECEMBER 31, 2007 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 9,679,568 $ 162,840,117 15,587,096 $ 300,314,601 Dividends and/or distributions reinvested 3,047,035 45,492,232 1,328,184 24,744,065 Redeemed (3,179,486) (51,235,631) (4,874,156) (94,248,550) --------------------------------------------------------------- Net increase 9,547,117 $ 157,096,718 12,041,124 $ 230,810,116 ===============================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2008, were as follows:
PURCHASES SALES -------------------------------------------------------------- Investment securities $ 746,147,563 $ 631,055,015
- -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE ------------------------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Over $800 million 0.60
- -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2008, the Fund paid $9,865 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class, for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a Distribution and Service Plan (the "Plan") in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the "Distributor"), for distribution related services, personal service and account maintenance for the Fund's Service shares. Under the Plan, payments are made periodically at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund's assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. F27 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended June 30, 2008, the Manager waived $4,406 for IMMF management fees. - -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received. As of June 30, 2008, the Fund had no outstanding forward contracts. - -------------------------------------------------------------------------------- 6. ILLIQUID OR RESTRICTED SECURITIES As of June 30, 2008, investments in securities included issues that are illiquid or restricted. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. The Fund will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid and restricted securities. Certain restricted securities, eligible for resale to qualified institutional purchasers, may not be subject to that limitation. Securities that are illiquid or restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments. - -------------------------------------------------------------------------------- 7. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of June 30, 2008, the Fund had on loan securities valued at $224,853,944. Collateral of $233,697,522 was received for the loans, all of which was received in cash and subsequently invested in approved instruments or held as cash. F28 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA - -------------------------------------------------------------------------------- 8. RECENT ACCOUNTING PRONOUNCEMENT In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard requires enhanced disclosures about derivative and hedging activities, including qualitative disclosures about how and why the Fund uses derivative instruments, how these activities are accounted for, and their effect on the Fund's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of SFAS No. 161 and its impact on the Fund's financial statements and related disclosures. F29 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA THIS PAGE INTENTIONALLY LEFT BLANK. F30 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 7 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA ITEM 2. CODE OF ETHICS. Not applicable to semiannual reports. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to semiannual reports. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to semiannual reports. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS 1. The Fund's Governance Committee (the "Committee") will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds' investment manager and its affiliates in making the selection. 2. The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual's background, skills, and experience; whether the individual is an "interested person" as defined in the Investment Company Act of 1940; and whether the individual would be deemed an "audit committee financial expert" within the meaning of applicable SEC rules. The Committee also considers whether the individual's background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. 3. The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: - the name, address, and business, educational, and/or other pertinent background of the person being recommended; - a statement concerning whether the person is an "interested person" as defined in the Investment Company Act of 1940; - any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and - the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares. The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation. 4. Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds' investment adviser) would be deemed an "interested person" under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds' outside legal counsel may cause a person to be deemed an "interested person." 5. Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company. ITEM 11. CONTROLS AND PROCEDURES. Based on their evaluation of the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 06/30/2008, the registrant's principal executive officer and principal financial officer found the registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. There have been no changes in the registrant's internal controls over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a) (1) Not applicable to semiannual reports. (2) Exhibits attached hereto. (3) Not applicable. (b) Exhibit attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Oppenheimer Variable Account Funds By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 08/07/2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 08/07/2008 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer Date: 08/07/2008 EX-99.CERT 2 rs620_48361cert302.txt RS620_48361CERT302.TXT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Variable Account Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 08/07/2008 /s/ John V. Murphy - --------------------------- John V. Murphy Principal Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Variable Account Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 08/07/2008 /s/ Brian W. Wixted - --------------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 3 rs620_48361cert906.txt RS620_48361CERT906.TXT EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 John V. Murphy, Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer Variable Account Funds (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended 06/30/2008 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Principal Executive Officer Principal Financial Officer Oppenheimer Variable Account Funds Oppenheimer Variable Account Funds /s/ John V. Murphy /s/ Brian W. Wixted - ---------------------------------- ---------------------------------- John V. Murphy Brian W. Wixted Date: 08/07/2008 Date: 08/07/2008 -----END PRIVACY-ENHANCED MESSAGE-----